Pioli 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:

The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $$38,500$ and budgeted

activity of $7,000$ hours.

During the year, the company completed the following transactions:

a$.$ Purchased $4,300$ kilos of raw material at a price of $$2\mathrm{.}40$ per kilo.

b$.$ Used $6,650$ kilos of the raw material to produce $4,500$ units of work in process.

c$.$ Assigned direct labor costs to work in process. The direct labor workers $($who were paid in cash$)$ worked $2,450$ hours at an average

cost of $$28\mathrm{.}80$ per hour.

d$.$ Applied fixed overhead to the $4,500$ 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 $$143,760.$ Of this total, $$59,660$ related to items

such as insurance, utilities, and indirect labor salaries that were all paid in cash and $$84,100$ related to depreciation of manufacturing

equipment.

e$.$ Transferred $4,500$ units from work in process to finished goods.

f$.$ Sold for cash $5,100$ units to customers at a price of $$59\mathrm{.}20$ per unit.

g$.$ Completed and transferred the standard cost associated with the $5,100$ units sold from finished goods to cost of goods sold.

h$.$ Paid $$44,290$ of selling and administrative expenses.

i$.$ Closed all standard cost variances to cost of goods sold.

Required:

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. 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.

Prepare an income statement for the year.