26. Country Glass, Inc. makes stained glass lamps. Its production process uses two departments. Bra cut into parts in the cutting department. The cut glass and other parts are then transferred to the assembly department, where they are put together. Country sells the lamps to retail stores. The following transactions apply to the corporation's first year of operations. Assume all transactions are cash transactions unless otherwise indicated. 1. Acquired $70,000 cash from issuing common stock. 2. Purchased $22,000 of direct raw materials. 3. Purchased $600 of indirect materials. Indirect materials costs are accumulated in a production supplies account and accounted for using the periodic inventory method. 4. Transferred $6,200 of direct materials to the cutting department. 5. Paid manufacturing workers $32,000. The cutting and assembly departments used direct labor of $14,000 and $16,000, respectively. Indirect labor costs were $2,000. 6. Applied overhead to production using the predetermined overhead rate of $0.60 per direct labor dollar. 7. Paid actual overhead costs other than indirect materials and indirect labor of $13,700 for the year. 8. Transferred $26,900 of cut glass inventory from the cutting department to the assembly department 9. Issued $8,500 of direct raw materials to the assembly department. 10. Transferred $39,000 of inventory from the assembly department to finished goods. 11. Sold inventory costing $34,000 for $56,000. 12. Paid selling, general, and administrative expenses of $11,300. 13. A physical count indicated that $120 of production supplies was on hand at the end of the first year of operation. 14. Closed the manufacturing overhead account, assuming overapplied or underapplied overhead was insignificant. Required a. Record the data in T-accounts. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for the first year. Cash WIP Cutting WIP Assembly Finished Goods Common Stock Bal 5,000 Bal 70.000 Bal 1,700 Bal 22,000 Retained Earnings cl) Bal 12,520 Bal 46,400 Sales Revenue Raw Materials (cl) Bal 7,300 Cost of Goods Sold Production Supplies (c) Bal 120 S.G&A Expenses (cl) Manuf. Overhead (6) Overhead Applied: Cutting $0.60 Assembly $0.60 * Total Bal