Gathman Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to cost of Goods Sold. There is no variable manufacturing overhead. The company's balance sheet at the beginning of the year was as follows Gathan Corporation Balance Sheet January 1 Assets Cash $999,00 Baw materials inventory 27,530 Finished goods inventory 73,255 Property, plant, and equipment (net) 784,490 Total assets $1,884,355 Liabilities and Equity Retained earnings Total liabilities and equity $1,684,355 51,084,355 The standard cost card for the company's only product is as follows: Standard Quantity or Hours Standard Cost Inputs Standard Price or Rate The standard cost card for the company's only product is as follows: Input Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours 1.5 pounds 0.5 hours 2.5 hours Standard Price or Rate 53.00 per pound $22.00 per hour 55.40 per hour Standard Cost $ 5.40 11.00 2.70 $19.10 The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $108,000 and budgeted activity of 20000 hours During the year, the company completed the following transactions a. Purchased 58,300 pounds of raw material at a price of $270 per pound Used 59,140 pounds of the raw material to produce 32,800 units of work in process c Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 17.400 hours at an average cost of $2100 per hour d. Applied fored overhead to the 32.800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $133,850. Of this total, 528,700 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $105.150 related to depreciation of manufacturing equipment e Transferred 32.800 units from work in process to finished goods manufacturing equipment e Transferred 32.800 units from work in process to finished goods Sold for cash 32.600 units to customers at a price of $69 20 per unit 9 Completed and transferred the standard cost associated with the 32.600 units sold from finished goods to cost of goods sold in Paid $72.910 of seling and administrative expenses Closed all standard cost variances to cost of goods sold 13.00 Required: 1 Compute all direct matenats direct labor and fixed overhead variances for the year 2 and 3. Record the above transactions in the worksheet that appears below. Because of the width of the worksheet, it is in two parts In your text, these two parts would be joined side-by-side to make one very wide worksheet and Determine the ending balance leg 12/31 balance in each account 4. Prepare an income statement for the year Complete this question by entering your answers in the tabs below. 11 to 1. Compute all direct materials, direct labor, and fixed overhead Variances for the year 2 and 3. Record the above transactions in the worksheet that appears below. Because of the width of the worksheet, it is in two parts. In your Determine the ending balance (6.9. 12/31 balance in each account. (Input all your answers as a positive value. Round your answers to the ne aten, .. 2 and 3. Record the above transactions in the worksheet that appears below. Because of the width of the worksheet, it is in two parts. In your te Determine the ending balance (2.9. 12/31 balance) in each account. (Input all your answers as a positive value. Round your answers to the nea Cash Raw Materials Work in Process 999,000 $ 27.530 S Finished PPAE net) Goods 05 732555 784 490 Materials Materials Price Variance Quantity Variance $ 05 Labor Rate Labor Variance Efficiency Variance 05 OS 1 S b d 1201 Reg4 > te of the width of the worksheet, it is in two parts. In your text, these two parts would be joined side-by-side to make one answers as a positive value. Round your answers to the nearest whole dollar amount.) Materials Price Materials Quantity Variance Variance 05 Labor Rate Variance 0 $ Labor Efficiency Variance 0 $ FOH Budget FOH Volume Variance Variance 0 $ 0 $ Retained Earnings Req 4 >