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Nelson Company, which uses a job-order costing system, had the following account balances on January 1 of the current year Raw Materials $2,400 $22.450 $65,700

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Nelson Company, which uses a job-order costing system, had the following account balances on January 1 of the current year Raw Materials $2,400 $22.450 $65,700 Work in Process Finished Goods he Work-in-Process Inventory consisted of threejobs: #1211 S5.120; #1212 ss,470; and #1213 S8,860. The Finished Goods Inventory consisted of two jobs, #1207, S3 1,900 and si 209 S33,SOO. Nelson Company uses a normal costing system with an overhead rate based on machine hours. The following budgeted information was available for the current year: Annual overhead costs $107,800 and machine hours 2.4 During the current year, the following transactions took place: a. Raw materials costing $50,000 were purchased on account. b. Total factory labor charges accrued were $147,400. c. A summary of material requisitions and time tickets appeared as follows: 50. Time Tickets Direct Machine Hours Used Material Labor Job No. Requisitions Labor HoursCost $3,100 1,900 1.100 9,350 200 5,000 360 400 105 180 1212 1213 1214 10,000 28.750 24,750 7,750 6,250 21,000 4.500 112,500 34,900 S 147,400 990 310 250 840 510 680 225 140 1216 1217 4.750 2.360 8,940 sub-total $40,230 8,500 Total $48,730 2.560 Indirect d. Other factory costs include $24,500 of depreciation on factory equipment,$9,500 of expired factory ry equipment,$9,500 ofexpired factory lude$24,500 ofdeprecia insurance, $12,000 of accrued property taxes and $18,300 of miscellaneous factory costs paid in cash. e. Job Nos. 1211, 1212, 1213, 1214, 1215, and 1218 were completed f. Job Nos. 1207, 1209, 1211, 1213, and 1218 were sold for a total of $300,000 cash. REQUIRED: A. What is the pre-determined annual overhead rate? B. Complete the attached cost flow diagram and job order cost sheets. Be sure to enter the beginning ntory accounts and be sure to compute ending balances for all accounts balances of the inventory accounts and be sure to compute ending balances for all accounts. C. Prepare ALL necessary journal entries for the current year in the attached general journal. D. Verify the ending balance of the work-in-process and finished goods inventories by reconciling the balances to the appropriate job cost sheets. E. Prepare the manufacturing statement and a partial income statement (through the manufacturing statement and a partial income statement (through gross profit) for the year

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