ercise #6 Cathcart Corporation had the following inventory balances on January 1, 2020: Raw Materials Inventory $10.000 Work in Process Inventory $ $20,000 Finished Goods Inventory $28,000 During 2020, the following transactions occurred: 1. Purchased $60,000 of raw materials on account. 2. $40,000 of raw materials were issued to the factory of which S35,000 are considered to be direct materials. 3. Total factory labor charges included 10,000 direct labor hours paid at $8 per hour and $20,000 of indirect labor charges. 4. Other factory overhead costs incurred included $8,000 of factory depreciation, $1,000 of expired factory insurance, $3,000 of accrued factory property taxes, and $4,000 of miscellaneous factory costs paid in cash. 3. Units with a total cost of $154,000 were completed 6. Units with a totul cost of $140,000 were sold for $200,000 cash. Cathcart Company uses an actual costing system, REQUIRED: A. Complete a cost-flow l-account diagram. B. Prepare all of the necessary journal entries C. Prepare a manufacturing statement and a partial (through gross profit) income statement. Exer Ab Work papers Raw Material Inventor ES REVERTIZOAREA Factory Parade Work in Proses layeatory Finished Goals Inventory COCIN Expense Fotory Certad GENERAT.JOURNAL GENERAL JOURNAL Manufacturing Schedule BHip Hau Materials Raw Mazil Purchases Raw Matrials Available for Us Endine Rew Meliss Row Makrials Used less: Indirect Material Dire Miser Direct Labur Factory Overhen Total Current Matutacturing is plus: Beginning Work in Process Invity Local Center Wurs in Process less: Cling Work in Press Conventor Cofinals Manufactured Partial Income intencil Nel Sales Cust of Goods Sold Beginning Finished Goods Inventory Casio Guads Manicured Cost of Goods Available fur Sale Ending wished Goods Investing Coeds Soul Gross Profil