P-M:2-35A Preparing comprehensive accounting for manufacturing transactions Mighty Stars produces stars for elementary teachers to reward their students. Mighty Stars trial balance on June 1 follows:

Account Title Balance, Debit Balance, Credit

Cash 14,000 blank

Accounts Receivable 160,000 blank

Category, Inventories blank blank

Raw Materials 6,000 blank

Work In Process 40,000 blank

Finished Goods 20,400 blank

Plant Assets 220,000 blank

Accumulated Depreciation blank 75,000

Accounts Payable blank 134,000

Wages Payable blank 2,600

Common Stock blank 139,000

Retained Earnings blank 109,800

Sales Revenue blank 0

Cost of Goods Sold 0 blank

Manufacturing Overhead 0 blank

Selling and Administrative Expenses 0, single underline Blank, single underline

Totals 460,400, double underline 460,400, double underline

June 1 balances in the subsidiary ledgers were as follows:

Raw Materials Inventory subsidiary ledger: Paper, $4,000; indirect materials, $2,000

Work-in-Process Inventory subsidiary ledger: Job 120, $40,000; Job 121, $0

Finished Goods Inventory subsidiary ledger: Large Stars, $9,900; Small Stars, $10,500

June transactions are summarized as follows:

Collections on account, $145,000.

Selling and administrative expenses incurred and paid, $32,000.

Payments on account, $39,000.

Materials purchased on account: Paper, $24,000; indirect materials, $4,200.

Materials requisitioned and used in production:

Job 120: Paper, $950

Job 121: Paper, $7,900

Indirect materials, $1,200

Wages incurred during June, $39,000. Labor time records for the month: Job 120, $3,600; Job 121, $17,000; indirect labor, $18,400.

Wages paid in June include the balance in Wages Payable at May 31 plus $36,100 of wages incurred during June.

Depreciation on plant and equipment, $2,500.

Manufacturing overhead allocated at the predetermined overhead allocation rate of 80% of direct labor costs.

Jobs completed during the month: Job 120 with 700,000 Large Stars at a total cost of $47,430.

Sales on account: all of Job 120 for $104,000.

Adjusted for overallocated or underallocated manufacturing overhead.

Requirements

Journalize the transactions for the company.

Open T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger. Insert each account balance as given and use the reference Bal. Post the journal entries to the T-accounts using the transaction letters as a reference.

Prepare a trial balance at June 30, 2024.

Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.

Prepare an income statement for the month of June.