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 $ 999,020 Rav materials inventory 28,340 Finished goods inventory 73,995 Property, plant, and equipment (net) 785,390 Total assets $1,886,745 Liabilities and Equity Retained earnings Total liabilities and equity 51.886.765 $1,885,745 The standard cost card for the company's only product is as follows: Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours 1.7 pounds 0.6 hours 0.6 hours Standard Price or Rate $ 5.00 per pound $23.00 per hour $ 4.60 per hour Standard Cost $8.50 13.80 2.75 $25.06 The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $69,000 and budgeted activity of 15,000 hours During the year, the company completed the following transactions: a. Purchased 28,800 pounds of raw material at a price of $4.70 per pound. b. Used 30.360 pounds of the raw material to produce 17,800 units of work in process. c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 11,680 hours at an average cost of $22.00 per hour. d. Applied fixed overhead to the 17,800 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 $133,880. Of this total, $29,050 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $104,830 related to depreciation of manufacturing equipment e. Transferred 17,800 units from work in process to finished goods f. Sold for cash 17.500 units to customers at a price of $73.60 per unit 9. Completed and transferred the standard cost associated with the 17.600 units sold from finished goods to cost of goods sold. h. Paid $72,980 of selling and administrative expenses. L. Closed all standard cost variances to cost of goods sold. Reauired: Save & Exit Subm a. Purchased 28,800 pounds of raw material at a price of $4.70 per pound, b. Used 30,360 pounds of the raw material to produce 17,800 units of work in process. c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 11680 hours a an average cost of $22.00 per hour d. Applied fixed overhead to the 17,800 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 $133,880 of this total, $29,050 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $104,830 related to depreciation of manufacturing equipment, e Transferred 17,800 units from work in process to finished goods Sold for cash 17.600 units to customers at a price of $73.60 per unit g. Completed and transferred the standard cost associated with the 17,600 units sold from finished goods to cost of goods sold n. Pald $72,980 of selling and administrative expenses. Closed all standard cost variances to cost of goods sold. Required: 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 text, these two parts would be joined side-by-side to make one very wide worsheet and Determine the ending balance (eg. 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. Req 1 to 3 Reg 4 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 Determine the ending balance (e-9., 12/31 balance in each account. (Input all your answers as a positive value, Round your ans Cash Raw Materials Work in Process 999.020 $ 28.340 $ Finished Goods PPSE (net) 1/1 $ Materials Price Materials Quantity Variance Variance 0 $ Labor Rate Variance 05 73.9955 a 785.390 0 $ b d e 9 h 12/31 Rea Submit a. Purchased 28,800 pounds of raw material at a price of 54.70 per pound, b. Used 30,360 pounds of the raw material to produce 17,800 units of work in process. c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 11680 hours at an average cost of $22.00 per hour d. Applied fixed overhead to the 17,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours atlowed. Actual fixed overhead costs for the year were $133,880 of this total, $29,050 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $104,830 related to depreciation of manufacturing equipment. e. Transferred 17,800 units from work in process to finished goods. Sold for cash 17600 units to customers at a price of $73,60 per unit. 9. Completed and transferred the standard cost associated with the 17600 units sold from finished goods to cost of goods sold. n. Paid $72,980 of selling and administrative expenses. 1. Closed all standard cost variances to cost of goods sold Required: 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 text, these two parts would be joined side-by-side to make one very wide worksheet and Determine the ending balance (eg, 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. Req 1 to 3 Reg 4 Prepare an income statement for the year. Lusher Corporation Income Statement