Fantastic Props, Inc., designs and fabricates movie props such as mock-ups of star-fighters and cybernetic robots. The company's balance sheet as of January 1, the beginning of the current year, appears below: Fantastic Props, Inc. Balance Sheet January 1 Assets Current assets: Cash.. Accounts receivable Inventories: Raw materials Work in process. Finished goods (props awaiting shipment) Prepaid insurance Total current assets $ 15,000 40,000 Buildings and equipment Less accumulated depreciation. Total assets $ 25,000 30,000 45,000 100,000 5,000 160,000 500,000 210,000 290,000 $450,000 Liabilities and Stockholders' Equity Accounts payable $ 75,000 Capital stock... Retained earnings $250,000 125,000 375,000 Total liabilities and stockholders' equity $450,000 Because each prop is a unique design and may require anything from a few hours to a month or more to complete, Fantastic Props uses a job-order costing system. Overhead in the fabrication shop is charged to props on the basis of direct labor cost. The company's predetermined overhead rate for the year is based on a cost formula that estimated $80,000 in manufacturing overhead for an estimated allocation base of $100,000 direct labor dollars. The following transactions were Ac Go a. Raw materials, such as wood, paints, and metal sheeting, were purchased on account, $80,000. b. c. Raw materials were issued to production, $90,000; $5,000 of this amount was for indirect materials. Payroll costs incurred and paid: direct labor, $120,000; indirect labor, $30,000; and selling and administrative salaries, $75,000. d. Fabrication shop utilities costs incurred, $12,000. e. Depreciation recorded for the year, $30,000 ($5,000 on selling and administrative assets; $25,000 on fabrication shop assets). f. Prepaid insurance expired, $4,800 ($4,000 related to fabrication shop operations, and $800 related to selling and administrative activities). g. Shipping expenses incurred, $40,000. h. Other manufacturing overhead costs incurred, $17,000 (credit Accounts Payable). i. Manufacturing overhead was applied to production. Overhead is applied on the basis of direct labor cost. j. Movie props that cost $310,000 to produce according to their job cost sheets were completed. k. Sales for the year totaled $450,000 and were all on account. The total cost to produce these movie props was $300,000 according to their job cost sheets. 1. Collections on account from customers, $445,000. m. Payments on account to suppliers, $150,000. Required: 1. Prepare a T-account for each account on the company's balance sheet, and enter the beginning balances. Job-Order Costing 129ct Go to Make entries directly into the T-accounts for transactions (a) through (m). Create new T-accounts as needed. Determine an ending balance for each T-account.