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Mapleton Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $48,000 for both cash and common stock. Boat 25 was

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Mapleton Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $48,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Mapleton had incurred cash costs of $8,640 for labor and $7,500 for materials. During the same period, Mapleton paid $11,160 cash for Page 567 actual manufacturing overhead costs. The company expects to incur $210,600 of indirect overhead cost during 2019. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $162,000. Mapleton 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, as illustrated here, to record Mapleton's business events. The first row shows beginning balances. Assets Equity Manuf Com. Work in Finished Cash + Process + Goods + Overhead-Stock + Ear.||| Rev.-Exp. = Net Inc. 48,000 + NA + NA + NA -48,000 + NAII NA - NA NA b. If Mapleton desires to earn a profit equal to 20 percent of cost, for what price should it sell e. If the boat is not sold by year-end, what amount would appear in the Work in Process d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost e. When is it appropriate to use estimated inventory cost on a year end balance sheet? the boat? Inventory and Finished Goods Inventory on the balance sheet for Boat 25? of the boat? Assets Equity Cash + 48,000+ = C. Stockt Ret Earn.-Revenue-Expenses-Net Income wiP + Fin Goods+ MOH 48,000 7 10 11-1 12 Predetermined manufacturing overhead rate 13Applied manufacturing overhead for Boat 25 14 15 Total product cost for Boat 25 16 18 19 . 20 21 d. 3 e

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