Ever heart Manufacturing Company uses a simple manufacturing accounting sys- tem. At the end ol its fiscal year on August 31, 2002, the adjusted trial balance contains the following accounts.

Physical inventory accounts on August 31, 2002, show the following inventory amounts:
Finished Goods \($54,600\), Work in Process \($23,400\), and Raw Materials $46,500.
Instructions

(a) Enter the adjusted trial balance data on a work sheet in financial statement order and complete the work sheet.

(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, 2002.

(d) Journalize the closing entries.

(e) Post the closing entries to Manufacturing Summary and to Income Summary.

Transcribed Image Text:

Debits Credits Cash 16,700 Accumulated Depreciation $353,000 Accounts Receivable (net) 62,900 Notes Payable 45,000 Finished Goods Inventory 56,000 Accounts Payable 38,200 Work in Process Inventory 27,800 Income Taxes Payable 9,000 Raw Materials Inventory 37,200 Common Stock 352,000 Plant Assets 890,000 Retained Earnings 205,300 Raw Materials Purchases 236,500 Sales 996,000 Direct Labor 280,900 $1,998,500 Indirect Labor 27,400 Factory Repairs 17,200 Factory Depreciation 19,000 Factory Manager's Salary 40,000 Factory Insurance 11,000 Factory Property Taxes 12,900 Factory Utilities 13,300 Selling Expenses 98,500 Administrative Expenses 115,200 Income Tax Expense 36,000 $1,998,500