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Exercise 12-5A Job-order costing in a manufacturing company LO 122 Perez Corporation bullds sailboats. On January 1, 2019, the company had the following account balances:

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Exercise 12-5A Job-order costing in a manufacturing company LO 122 Perez Corporation bullds 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 buld the boat. Perez had incurred cash costs of $4,700 for labor and $4,850 for materials. During the same period, Perez paid $9,820 cash for actual manufacturing overhead costs. The company expects to incur $273,000 of ind rect 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. Perez uses a just-in-time inventory management system. Consequently, it does not have raw materials inwentory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required a. Use the horizontal financial statements model, to recold Perez's business events. The first row shows beginning balances b. If Perez desires to eam a profit equal to 30 percent of cost, for what price should it sell the boat? c. If the boat is not sold by year-end, what amount would oppeat in the Work in Process loventory 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. Use the hocuontal financial statemel huind c. Enter any decreases to account balances with a minot signi.)

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