(Postretirement Benefit Worksheet) Dusty Hass Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The company adopts the provisions of Statement No. 106 beginning January 1, 2011. The following balances relate to this plan on January 1, 2011.

As a result of the plan’s operation during 2011, the following additional data are provided by the actuary.

Instructions

(a) Using the preceding data, compute the net periodic postretirement benefit cost for 2011 by preparing a worksheet that shows the journal entry for postretirement expense and the year-end balances in the related postretirement benefit memo accounts. (Assume that contributions and benefits are paid at the end of the year.)

(b) Prepare any journal entries related to the postretirement plan for 2011 and indicate the postrefirement amounts reported in the financial statements for 2011.

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Plan assets $200,000 Expected postretirement benefit obligation 820,000 Accumulated postretirement benefit obligation No prior service costs exist. 200,000