Got Attitude, Inc. (GA) is a clothing design house that has just installed an activity based costing dimension into their job costing accounting system. GAI has identified four activity centers. The activity centers are listed below along with the estimated overhead costs and expected level of activity in each center for the coming year. Activity Center Design Inspection Purchasing Ongoing Training Estimated Cost S500 $300 $ 300 $750 Expected Activity 25 designs 10 inspections 30 purchase orders Cost Driver Number of designs Number of inspections Number of purchase orders Number of trainees $20 30 50 trainees On January 1, the company had the following inventory balances: S1,000 S 200 Cash Raw Materials 75 Supplies Work in Process $ ? Finished Goods $ 500 Capital Stock Retained Earnings S1,000 m?m? In work-in-process Job 5 has the following detail: Direct Materials Direct Labor Overhead $100 $210 $300 During the year Jobs 6, 7, and 8 were started. The following transactions were recorded during the year: Raw materials and supplies were purchased in cash, $500 and $100, respectively. b. Raw materials were requisitioned for use in production, direct (Job 5, s125, Job 6, $100, Job 7, $200, Job 8, S100). In addition, supplies (design, $50, inspection, $40, purchasing, $20) were used. c. The following costs were incurred for employee services: direct (Job 5, $150, Job 6, $125, Job 7, $175, Job 8, $150), indirect labor (inspection, S40, purchasing, $35, ongoing training, $150). d. Administrative expenses were paid on account, $350. Miscellaneous overhead costs were paid in cash, (design, $85, inspection $120, purchasing, $70, ongoing training $305) f c. Manufacturing overhead cost was applied to production. the year are as follows: Actual activity for the various activity centers during Job 5 2 designs 2 insps 4 po 8 trainees Job 8 1 design 1 insps 1 po 8 trainees Job 6 1 design 2 insps 3 po 8 trainee Job 7 2 designs 1 insps 2 po 8 trainees Design Inspection Purchasing Ongoing Training Jobs 6, 7, and 8 were completed. g. h. Jobs 6 was sold for $1,500 for cash and Job 8 was sold for $750 on account. i. In addition, the job in finisbed goods was sold for $900 for cash. REQUIRED: 1. Prepare the GAI Balance Sheet for January 1. 2. Prepare the job cost sheets for Jobs 5, 6, 7, and 8. 3. Compute the activity cost rate for each activity. 4. Prepare and record in T-accounts all journal entries including the subsidiary ledgers for activities. 5. Prepare the cost of goods manufactured statement. 6. Determine if any activities have a material over or under applied balance. Carry out the necessary caleulations to elose ALL of the activity balances to the appropriate accounts. BE SURE TO DEMONSTRATE YOUR WORK. 7. Prepare a cost of goods sold statement. 8. Prepare an income statement for the year's operations. 9. Prepare a statement of retained earnings. 10. Prepare an ending balance sheet for GAL Got Attitude, Inc. (GA) is a clothing design house that has just installed an activity based costing dimension into their job costing accounting system. GAI has identified four activity centers. The activity centers are listed below along with the estimated overhead costs and expected level of activity in each center for the coming year. Activity Center Design Inspection Purchasing Ongoing Training Estimated Cost S500 $300 $ 300 $750 Expected Activity 25 designs 10 inspections 30 purchase orders Cost Driver Number of designs Number of inspections Number of purchase orders Number of trainees $20 30 50 trainees On January 1, the company had the following inventory balances: S1,000 S 200 Cash Raw Materials 75 Supplies Work in Process $ ? Finished Goods $ 500 Capital Stock Retained Earnings S1,000 m?m? In work-in-process Job 5 has the following detail: Direct Materials Direct Labor Overhead $100 $210 $300 During the year Jobs 6, 7, and 8 were started. The following transactions were recorded during the year: Raw materials and supplies were purchased in cash, $500 and $100, respectively. b. Raw materials were requisitioned for use in production, direct (Job 5, s125, Job 6, $100, Job 7, $200, Job 8, S100). In addition, supplies (design, $50, inspection, $40, purchasing, $20) were used. c. The following costs were incurred for employee services: direct (Job 5, $150, Job 6, $125, Job 7, $175, Job 8, $150), indirect labor (inspection, S40, purchasing, $35, ongoing training, $150). d. Administrative expenses were paid on account, $350. Miscellaneous overhead costs were paid in cash, (design, $85, inspection $120, purchasing, $70, ongoing training $305) f c. Manufacturing overhead cost was applied to production. the year are as follows: Actual activity for the various activity centers during Job 5 2 designs 2 insps 4 po 8 trainees Job 8 1 design 1 insps 1 po 8 trainees Job 6 1 design 2 insps 3 po 8 trainee Job 7 2 designs 1 insps 2 po 8 trainees Design Inspection Purchasing Ongoing Training Jobs 6, 7, and 8 were completed. g. h. Jobs 6 was sold for $1,500 for cash and Job 8 was sold for $750 on account. i. In addition, the job in finisbed goods was sold for $900 for cash. REQUIRED: 1. Prepare the GAI Balance Sheet for January 1. 2. Prepare the job cost sheets for Jobs 5, 6, 7, and 8. 3. Compute the activity cost rate for each activity. 4. Prepare and record in T-accounts all journal entries including the subsidiary ledgers for activities. 5. Prepare the cost of goods manufactured statement. 6. Determine if any activities have a material over or under applied balance. Carry out the necessary caleulations to elose ALL of the activity balances to the appropriate accounts. BE SURE TO DEMONSTRATE YOUR WORK. 7. Prepare a cost of goods sold statement. 8. Prepare an income statement for the year's operations. 9. Prepare a statement of retained earnings. 10. Prepare an ending balance sheet for GAL