Garrett Manufacturing Company uses a simple manufacturing accounting system. At the end of its fiscal year on August 31, 2012, the adjusted trial balance contains the following accounts.

Physical inventory accounts on August 31, 2012, show the following inventory amounts: Finished Goods $50,600, Work in Process $23,400, and Raw Materials $44,500.

Instructions
(a) Enter the adjusted trial balance data on a worksheet in financial statement order and complete the worksheet.
(b) Prepare a cost of goods manufactured schedule for the year.
(c) Prepare an income statement for the year and a balance sheet at August 31, 2012.
(d) Journalize the closing entries.
(e) Post the closing entries to Manufacturing Summary and to IncomeSummary.

Transcribed Image Text:

Debits Credits Accounts Receivable (net) Finished Goods Inventory Work in Process Inventory Raw Materials Inventory 6,700 Accumulated Depreciation 353,000 62,900 Notes Payable 56,000 Accounts Payable 27,800 Income Taxes Payable 37,200 Common Stock 870,000 Retained Earnings 3 Raw Materials Purchases $1,998,500 Factory Insurance Factory Utilities Administrative Expenses 3 $1,998,500