Jiminez Company engaged in the following transactions during May:
1.Purchased raw materials for cash,$400
2.Used raw materials to begin jobs,$284
3.Paid wages of production employees,$180
4.Applied overhead at rate of $1.25 per direct labor dollar
5.Completed job that had cost $320
6.Sold for $440 cash goods that had cost $295 to complete
Required:
Use the horizontal statements model provided to indicate how each of these events affected Jiminez's financial statements.Show dollar amounts of increases and decreases.If an item is not affected by a transaction,indicate by writing NA.

Question

Quizplus · Accepted Answer

The Answer of Jiminez Company engaged in the following transactions during May:
1.Purchased raw materials for cash,$400
2.Used raw materials to begin jobs,$284
3.Paid wages of production employees,$180
4.Applied overhead at rate of $1.25 per direct labor dollar
5.Completed job that had cost $320
6.Sold for $440 cash goods that had cost $295 to complete
Required:
Use the horizontal statements model provided to indicate how each of these events affected Jiminez's financial statements.Show dollar amounts of increases and decreases.If an item is not affected by a transaction,indicate by writing NA.

Jiminez Company Engaged in the Following Transactions During May