Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materials and worked on three job orders during Year 1 for which data follow....


Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materials<br>and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise<br>indicated.)<br>Direct Raw<br>Direct<br>Materials Used<br>Labor<br>Job 1<br>$ 2,800<br>$ 6,000<br>Job 2<br>4,000<br>6,000<br>8,000<br>Job 3<br>4,000<br>Total<br>$12,800<br>$18,000<br>Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed<br>during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory<br>overhead was $11,300.<br>Required<br>a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.<br>c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the<br>amount is insignificant.<br>d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.<br>

Extracted text: Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Direct Raw Direct Materials Used Labor Job 1 $ 2,800 $ 6,000 Job 2 4,000 6,000 8,000 Job 3 4,000 Total $12,800 $18,000 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory overhead was $11,300. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.
Complete this question by entering your answers in the tabs below.<br>Req D CGM<br>Sched<br>Req D Inc<br>Stmt<br>Req D Bal<br>Sheet<br>Req A and C<br>Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the<br>amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balances with<br>a minus sign.)<br>Assets<br>Equity<br>Work In<br>Manufacturing<br>Overhead<br>Finished<br>Common<br>Stock<br>Retained<br>Cash<br>+<br>Raw Materials<br>Revenue<br>Expenses = Net Income<br>Process<br>Goods<br>Earnings<br>60,000 +<br>60,000 +<br>0 =<br>%3D<br>+<br>+<br>+<br>+<br>+<br>+<br>+<br>+<br>%3D<br>+<br>+<br>+<br>+<br>+<br>%3D<br>+<br>+<br>+<br>+<br>+<br>+<br>+<br>+<br>+<br>%3D<br>+<br>+<br>+<br>%3D<br>+<br>+<br>+<br>+<br>+<br>+<br>+<br>+<br>%3D<br>+<br>+<br>60,000 +<br>0 +<br>0 +<br>60,000 +<br>0 =<br>< Req A and C<br>Req D CGM Sched<br>><br>

Extracted text: Complete this question by entering your answers in the tabs below. Req D CGM Sched Req D Inc Stmt Req D Bal Sheet Req A and C Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Assets Equity Work In Manufacturing Overhead Finished Common Stock Retained Cash + Raw Materials Revenue Expenses = Net Income Process Goods Earnings 60,000 + 60,000 + 0 = %3D + + + + + + + + %3D + + + + + %3D + + + + + + + + + %3D + + + %3D + + + + + + + + %3D + + 60,000 + 0 + 0 + 60,000 + 0 = < req="" a="" and="" c="" req="" d="" cgm="" sched="">
Jun 08, 2022
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