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Exercise 11-14A (Algo) Product cost flow and financial statements LO 11-1, 11-2, 11-3
Benson Manufacturing Company was started on January 1, Year 1. The company was affected by the following events during its first year of operation.
Acquired $1,600 cash from the issue of common stock.
Paid $550 cash for direct raw materials.
Transferred $360 of direct raw materials to work in process.
Paid production employees $620 cash.
Paid $300 cash for manufacturing overhead costs.
Applied $235 of manufacturing overhead costs to work in process.
Completed work on products that cost $980.
Sold products that cost $840 for $1,610 cash.
Paid $310 cash for selling and administrative expenses.
Made a $70 cash distribution to the owners.
Closed the Manufacturing Overhead account.
Required
Record these events in a horizontal statements model. The first event is shown as an example.
Prepare a schedule of cost of goods manufactured and sold.
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