Central Pool Company builds custom swimming pools for homeowners in Toronto, Calgary, and Montreal. It uses material requisition forms and direct labor time tickets to trace direct materials and direct labor costs to specific jobs. Manufacturing overhead is applied to jobs at a rate of $100 per direct labor hour. During the first month of operations, the company recorded the following transactions: a) Purchased $200,000 in raw materials. b) Issued the following materials to production: $130,000 was directly traceable to specific jobs. $20,000 was not directly traceable to specific jobs. c) Recorded the following labor costs (paid in cash): Direct labor $50,000 Construction supervision 30,000 d) Recorded the following actual manufacturing overhead costs: Construction insurance $ 5,000 Construction equipment depreciation 25,000 Pool permits and inspections 5,000 e) Recorded the following nonmanufacturing costs: Office equipment depreciation $ 3,000 Rent and insurance on owners company car 2,000 Advertising costs 10,000 f) Applied manufacturing overhead to jobs in process based on 900 actual direct labor hours. g) Completed 15 pools at a total cost of $195,000. h) Finalized the sale of 13 pools that cost $176,000. The other 2 pools are completed and awaiting inspection by the customer before the sale is finalized. i) Recorded sales revenue of $325,000 on the 13 pools that were sold. j) Closed the Manufacturing Overhead account balance to Cost of Goods Sold. Required: 1. Prepare journal entries for each of the transactions. 2. Show how all of these costs would flow through the following accounts and their ending balances (Assume ZERO beginning balances): Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead Cost of Goods Sold Sales Revenue Nonmanufacturing Expenses 3. Prepare a cost of goods manufactured report for the company. 4. Prepare an income statement. Expert Answer An expert answer will be posted here. Post a question Your toughest questions, solved step-by-step. Post a question text For example: What is E = mc^2? 29 days left to ask 19 more questions Continue to post