Sexton Manufacturing began business on January 1 2015 The following
Sexton Manufacturing began business on January 1, 2015. The following events pertain to its first year of operation.
1. Acquired $2,000 cash by issuing common stock.
2. Paid $800 cash for direct raw materials.
3. Transferred $500 of direct raw materials to Work in Process Inventory.
4. Paid production employees $700 cash.
5. Applied $325 of manufacturing overhead costs to Work in Process Inventory.
6. Completed work on products that cost $1,100.
7. Sold products for $1,600 cash.
8. Recognized cost of goods sold from Event No. 7 of $875.
9. Paid $450 cash for selling and administrative expenses.
10. Paid $350 cash for actual manufacturing overhead costs.
11. Made a $200 cash distribution to owners.
12. Closed the Manufacturing Overhead account.

a. Record the preceding events in a horizontal statements model. The first event is shown as an example.

b. Prepare a schedule of cost of goods manufactured andsold.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help