Zachary Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,600 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 Materials UsedDirect LaborJob 1 $1,100 $2,100 Job 2 2,000 3,700 Job 3 3,400 2,100 Total $6,500 $7,900 Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $11,070 cash. Zachary paid $700 for selling and administrative expenses. Actual factory overhead was $6,130. Requireda. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.

The horizontal model arranges financial statement elements horizontally across a page. In the…

Answered: Zachary Manufacturing Corporation was…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 3P: On December 1, Carmel Valley Production Inc. had a work in process inventory of 1,200 units that...

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Zachary Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,600 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 Materials Used	Direct Labor
Job 1		$	1,100	$	2,100
Job 2			2,000		3,700
Job 3			3,400		2,100
Total		$	6,500	$	7,900

Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $11,070 cash. Zachary paid $700 for selling and administrative expenses. Actual factory overhead was $6,130.

Required

a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.

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