Campbell Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $80,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Campbell had incurred cash costs of $6,500 for labor and $5,500 for materials. During the same period, Campbell paid $11,640 cash for actual manufacturing overhead costs. The company expects to incur $234,000 of indirect overhead cost during 2019. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $130,000.

Campbell uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.

Required

1. Use the horizontal financial statements model, to record Campbells business events. The first row shows beginning balances.- Use the horizontal financial statements model, to record Campbells business events. The first row shows beginning balances. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)

2. If Campbell desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat?- If Campbell desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

3. If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25?-

   If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25? (Do not round intermediate calculations.)

4. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?-

   Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?