Lusher 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 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 1.5 kilos 0.7 hours 0.7 hours Standard Standard Price or Rate Cost $ 5.00 per kilo $ 7.50 $22.00 per hour 15.40 $ 5.50 per hour 3.85 $26.75 The company calculated the following variances for the year: Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed manufacturing overhead budget variance Fixed manufacturing overhead volume variance $20,600 U $ 500 F $21,852 U $26, 400 V $29,010 U $ 7,315 F The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $86,240 and budgeted activity of 15,680 hours. During the vear, the company completed the following transactions: During the year, the company completed the following transactions: a. Purchased 41,200 kilos of raw material at a price of $5.50 per kilo. b. Used 36,350 kilos of the raw material to produce 24,300 units of work in process. c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 18,210 hours at an average cost of $23.20 per hour. d. Applied fixed overhead to the 24,300 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 $115,250. Of this total, $40,250 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $75,000 related to depreciation of manufacturing equipment. e. Transferred 24,300 units from work in process to finished goods. f. Sold for cash 27,100 units to customers at a price of $33.60 per unit. g. Completed and transferred the standard cost associated with the 27,100 units sold from finished goods to cost of goods sold. h. Paid $171,000 of selling and administrative expenses. i. Closed all standard cost variances to cost of goods sold. Required: 1 and 2. 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. The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net) account which is abbreviated as PP&E (net). and Determine the ending balance (e.g., 12/31 balance) in each account. 3. Prepare an income statement for the year. 2 Req3 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 balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net) account which is abbreviated as PP&E your answers as a positive value. Round your answers to the nearest whole dollar amount.) Materials Cash Raw Materials Work in Process Labor Rate Finished Goods Quantity PP&E (net) FOH B Vari Variance Materials Price Variance $ 0 Variance $ Labor Efficiency Variance $ $ 1,200,000 $ 42,000 $ 0 $ 80,250 $ 513,600 = 0 $ 0 0 $ Prepare an income statement for the year. Lusher Corporation Income Statement