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ABC Company makes widgets. ABC Company's manufacturing process is as follows: The Manufacturing Department pulls all raw materials from inventory to create the widgets. For

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ABC Company makes widgets. ABC Company's manufacturing process is as follows: The Manufacturing Department pulls all raw materials from inventory to create the widgets. For each widget the raw materials cost is $25. Individuals within the Manufacturing Department begin working on the widgets and the direct labor cost associated with the Manufacturing Department's work is $70 per widget. On February 28, 2021 ABC Company estimates that is manufacturing overhead for the month of March 2021 will be $36,000 and it estimates it will manufacture 4,000 units. ABC Company allocates its manufacturing overhead based on the number of units manufactured. After the widget is finished in the Manufacturing Department the widget is stored in the warehouse until the widgets are sold. ABC Company uses FIFO. ABC Company's inventory at the end of the day on February 28, 2021 (beginning of the day of March 1, 2021) consists of the totals: Dollars # of Units Raw Materials $ 31,250 Materials to make 1,250 widgets WIP $ 0 None Finished Goods $247,200 2,400 widgets (all at the same cost) Total $278,450 N/A Making a widget is a seven day process. ABC Company begins manufacturing 1,000 widgets on March 1st and finishes those 1,000 widgets on March 7th ABC Company then begins manufacturing another 1,000 units on March 8th and finishes those units on March 14th. ABC Company begins manufacturing another 1,000 units on March 15th and finishes those units on March 21st On March 22nd ABC Company increases its production schedule; it begins manufacturing 1,100 units on March 22nd and finishes those units on March 28th ABC Company begins manufacturing another 1,100 units on March 29th which will be finished in April. All of the materials are pulled from the raw materials inventory on the first day of the manufacturing process. For the employees who manufacture the widgets ABC Company pays them in cash. ABC Company pays these employees $35 per unit on the first day of the manufacturing process and $35 per unit on the last day of the manufacturing process. The allocation for manufacturing overhead is made and recorded on the 5th day of the manufacturing process. On March 1st ABC Company receives all bills for the items which make up its manufacturing overhead for March 1st - 15th, the bills total $18,250. The bills are paid on the 15th. On March 16th ABC Company receives all bills for the items which make up its manufacturing overhead for March 16th - 31st, the bills total $18,250. The bills are paid on the 31s ABC Company buys $31,250 of raw materials (enough to make 1250 units) for cash on March 5th, March 12th, March 19th, and again on March 26th. ABC Company sells its widgets at $140 each. ABC Company sells 1200 units on account on March 10th, March 20th, and again on March 30th ABC Company adjusts for any underallocated or overallocated MOH by making the adjustment directly to COGS. The adjustment is made on the last day of the month. (12 points) Record all journal entries for March 1st - March 31st b. (3 points) What are the balances in Raw Materials, WIP and Finished Goods at the end of the day of March 31s? a

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