Franklin Corporation builds sailboats. On January 1, Year 3, 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 build the boat, Franklin had incurred cash costs of $4,800 for labor and $5,150 for materials. During the same period, Franklin paid $6,200 cash for actual manufacturing overhead costs. The company expects to incur $162,500 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 a. Use the horizontal financial statements model, to record Franklin's business events. The first row shows beginning balances. b. If Franklin desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement cthe actual or the estimated cost of the boat? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use the horizontal financial statements model, to record Franklin's business ever Enter any decreases to account balances with a minus sign.) Balance Sheet Assets Finished Manufacturing Goods Overhead Cash Work in Process Equity Common Retained Stock earnings 80,000 + 80,000+ + = + Required A Required B Required Required D Use the horizontal financial statements model, to record Franklin's business events. The first row shows beginning balar Enter any decreases to account balances with a minus sign.) Balance Sheet Income Statement Assets Equity Work in Finished Manufacturing Common Retained Cash Net Process Goods Overhead Stock Revenue earnings Expense Income 80,000+ 80,000 + + + + + + ++++ III # a. Use the horizontal financial statements model, to record Franklin's business events. The first row shows beginning balances. b. If Franklin desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? 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. Required A Required B Required C Required D If Franklin desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Desired price a. Use the horizontal financial statements model, to record Franklin's business events. The first row shows beginning balances. b. If Franklin desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? 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. Required A Required 8 Required C Required D If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods In on the balance sheet for Boat 25? (Do not round intermediate calculations.) Work in process inventory Finished goods inventory a. Use the horizontal financial statements model, to record Franklin's business events. The first row shows beginning balances b. If Franklin desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement cthe actual or the estimated cost of the boat? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat? The amount of inventory is
