Franklin Corporation builds sailboats. On January $1,$ Year $3,$ the company had the following account balances: $$90,000$ for both cash and common stock. Boat $25$ was started on February $10$ and finished on May $31.$ To build the boat, Franklin had incurred cash costs of $$5,700$ for labor and $$5,650$ for materials. During the same period, Franklin paid $$9,630$ cash for actual manufacturing overhead costs. The company expects to incur $$212,500$ of indirect overhead cost during Year $3.$ The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $$125,000.$

Franklin uses a just$-$in$-$time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.

Required

Use the horizontal financial statements model to record Franklin$$s business events. The first row shows beginning balances.

If Franklin desires to earn a profit equal to $10$ percent of cost$,$ for what price should it sell the boat?

If the boat is not sold by year$-$end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat $25?$

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.

Required A

Required C

Use the horizontal financial statements model to record Franklin's business events. The first row shows beginning balances.

Note: Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.Complete this question by entering your answers in the tabs below.

Required A

Required D

Use the horizontal financial statements model to record Franklin's business events. The first row shows beginning balances.

Note: Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.