Flag Custom Chrome Inc. manufactures special chromed parts made to order and specifications of the customer. It has two production departments, Stamping and Plating, and two service departents, Power and Maintanance. In any production department, the job in process is wholly completed before the next job is started. The company operates on a fiscal year, which ends September 30. Following is the post-closing trial balance as of September 30. Custom Chrome Inc. Post- Closing Trial Balance September 30, 2013 Cash 22,500 Accounts Recievable 21,700 Finished Goods 8,750 Work in Process 3,600 Materials 15,000 Prepaid Insurance 4,320 Factory Building 64,000 Accum. Depr.- Factory Building 22,500 Machinery and Equiptment 38,000 Accum. Depr. - Machinery and Equiptment 16,000 Office Equiptment 10,500 Accum. Depr. - Office Equiptment 7,500 Accounts Payable 2,500 FICA Tax Payable 3,120 Federal Unemployment Tax Payable 364 State Unemployment Tax Payable 1,404 Employees Income Tax Payable 5,200 Capital Stock 75,000 Retained Earnings 54,782 $188,370 $188,370 1. Additional Information: Materials Units Unit Cost Total A 120 25 3,000 B 320 15 4,800 C 180 30 5,400 Factory Supplies 1,800 $15,000 2. The company uses the FIFO method of accounting for all inventories. Material A is used in the Stamping Department, and materials B and C are used in the Plating Department. The balance of the work in process account represents the following costs that are applicable to Job 905. (The customer's order is for 1,000 units of the finished product.) Direct Materials 1,500 Direct Labor 1,200 Factory Overhead 900 $3,600 3. The finished goods account reflects the cost of Job 803, which was finished at the end of the preceding month and is awaiting delivery orders from the customer. 4. At the beginning of the year, factory overhead application rates were based on the following data: Stamping Dept. Plating Dept. Estimated factory overhead for the year $145,000 $115,000 Estimated direct labor hours for the year 29,000 6,000 In October, the following transactions were recorded: a. Material A 1,100 units @ $26 Material B 900 units @ $17 Material C 800 inits @ $28 Factory Supplies $3,200 b. The following materials were issued to the factory: Job 905 Job 1001 job 1002 Material A 600 units 400 units Material B 400 units 200 units Material C 200 units 400 units Factory Supplies- $2,450 C. Customers' orders covered by Jobs 1001 and 1002 are for 1,000 and 500 units of finished product, respectively. Factory wages and office, sales, and administrative saleries are paid at the end of each month. The following data, provided from an analysis of labor-time records and salary schedules, will be sufficient for the preparation of the entries to record the payroll. (Assume FICA and federal income tax rates of 8% and 10%, respectively.) Record the payroll distribution for October. Stamping Dept. Plating Dept. Job 905 100 hr @ $9 300 hr @ $11 Job 1001 1,200 hr @ $9 300 hr @ $11 Job 1002 800 hr @ $9 D. Wages of the supervisors, custodial personnel, ect., totaled $9,500; administrative salaries were $18,300. Miscellaneous factory overhead incurred during October totaled $4,230. Misc selling and administrative expenses were $1,500. These items as well as the FICA were paid. (See accounts balances on the post- closing trial balance for September 30.) E. Annual depreciation on plant assets is calculated using the following rates: Factory buildings- 5% Machinery and equiptment- 20% Office equiptment- 20% F. The balance of the prepaid insurance account represents a three year premium for a fire insurance policy covering the factory building and machinery. It was paid on the last day of he preceding month and became effective on October 1. G. The summary of factory overhead prepared from he factory overhead ledger is reproduced here: Summary of Factory Overhead for October Transaction Account Stamping Plating Power Maintance Total a. Factory Supplies $940.00 $750.00 $260.00 $260.00 $2,450.00 b. Indirect Labor 3,780.00 2,860.00 970.00 1,890.00 9,500.00 c. Payroll Taxes 2,948.40 1,229.80 126.10 245.70 4,550.00 d. Misc. 1,692.00 1,410.00 752.00 376.00 4,423.00 e. Depreciation 360.00 270.00 90.00 180.00 900.00 f. Insurance 48.00 40.00 16.00 16.00 120.00 Total $9,768.40 $6,559.80 $2,214.10 $3,207.70 $21,750.00 H. The total expenses of the Maintance Department are distributed on the basis of floor space occupied by the Power Department (8,820 sq ft), Stamping Department (19,500 sq ft), and Plating Department (7,875 sq ft). The power department expenses are then allocated equally to the Stamping and Plating departments. I. After the actual factory overhead expenses have been distributed to the departmental accounts and the applied factory overhead has been recorded and posted, any balances in the departmental accounts are transferred to Under- and Overapplied Overhead. J. Jobs 905 and 1001 were finished duing the month. Job 1002 is still in process at the end of the month. K. During the month, Jobs 803 and 905 were sold at a mark up of 50% on cost. L. Recieved $55,500 from customers in payment of their accounts. M. Checks were issued in the amount of $43,706 for payment of the payroll. Required:2. Prepare materials inventory ledger cards and enter October 1 Balances.