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Exercise #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

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Exercise #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 $35,000 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. 5. Units with a total cost of $154,000 were completed. 6. Units with a total cost of $140,000 were sold for $200,000 cash. Cathcart Company uses an actual costing system. REQUIRED: A. Complete a cost-flow T-account diagram. B. Prepare all of the necessary journal entries. C. Prepare a manufacturing statement and a partial (through gross profit) income statement. sercise 16 Workpapers Raw Material inventory Factory Payroll Work in Process Inventory Finished Goods laventory COGS EN TTT Factory Overhead GENERAL JOURNAL GENERAL JOURNAL Manufacturing Schedule Beginning Raw Materials Raw Material Purchases Raw Materials Available for Use Ending Raw Materials Raw Materials Used lese Indirect Materials Direct Materials Direct shor Factory Overhead Total Current Manufacturing Cost plus Beginning Work in Process Inventory Total Cost of Work in Process les Ending Work in Process Inventory Cost of Goods Manufactured Partial Income Statement Net Sales Cost of Goods Sold Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Finished Goods Inventory Cost of Goods Sold Gross Profit

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