(Postretirement Benefit Worksheet, Reporting) 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.

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

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

Service cost for 2011 is $70,000 Discount rate is 9%

Contributions to plan in 2011 are $60,000 Expected return on plan assets is $9,000 Actual return on plan assets is $15,000 Benefits paid to employees are $44,000 Average remaining service to full eligibility: 20 years 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 postretirement amounts reported in the financial statements for 2011.