Check my work 1 Stuart Corporation builds sailboats. On January 1, Year 3, the company had the following account balances: $65,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Stuart had incurred cash costs of $6,900 for labor and $4,200 for materials. During the same period, Stuart paid $10,290 cash for actual manufacturing overhead costs. The company expects to incur $187,500 of indirect overhead cost during Year 3. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $125,000. 10 points Stuart 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. eBook Required Hint References a. Use the horizontal financial statements model, to record Stuart's business events. The first row shows beginning balances. b. If Stuart desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use the horizontal financial statements model, to record Stuart's business events. The first row shows beginning balances. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) Balance Sheet Income Statement Assets Finished Goods Cash Work in Process + + Manufacturing Overhead Equity Common Retained Stock earnings 65,000 + Revenue Expense Net Income 65,000 + + Check my work 1 1 Required 10 points a. Use the horizontal financial statements model, to record Stuart's business events. The first row shows beginning balances. b. If Stuart desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat? eBook Hint Complete this question by entering your answers in the tabs below. References Required A Required B Required C Required D Use the horizontal financial statements model, to record Stuart's business events. The first row shows beginning balances. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) Balance Sheet Income Statement Assets Work in Finished Process Goods Cash + + + Manufacturing Overhead Equity Common Retained Stock earnings 65,000 + + Revenue Expense Net Income 65,000 + + + + + + + + + + + + + + + + + + + + + + + - + + + + + + + + + Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 1 Stuart Corporation builds sailboats. On January 1, Year 3, the company had the following account balances: $65,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Stuart had incurred cash costs of $6,900 for labor and $4,200 for materials. During the same period, Stuart paid $10,290 cash for actual manufacturing overhead costs. The company expects to incur $187,500 of indirect overhead cost during Year 3. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $125,000. 10 points Stuart 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 a. Use the horizontal financial statements model, to record Stuart's business events. The first row shows beginning balances. b. If Stuart desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D If Stuart desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Desired price $ 6,500.00 X 1 Juan Lui PoiaLIVIT unus salvas. VII January 1, cal , LIIC Company hau LC IUIIUVVilly account walances. pUJUVU IVI DULII LASH common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Stuart had incurred cash costs of $6,900 for labor and $4,200 for materials. During the same period, Stuart paid $10,290 cash for actual manufacturing overhead costs. The company expects to incur $187,500 of indirect overhead cost during Year 3. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $125,000. 10 points Stuart 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. eBook Required Hint References a. Use the horizontal financial statements model, to record Stuart's business events. The first row shows beginning balances. b. If Stuart desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D 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.) Work in process inventory Finished goods inventory