1. Prepare journal entries to record the transactions for the year.
2. Prepare a T-account for manufacturing overhead and any account that you deem appropriate.
3. Is the Structure (manufacturing) Overhead account under-applied or over-applied for the year? By how much?
4. Prepare a schedule of cost of goods manufactured. If done correctly, the cost of goods manufactured from your schedule should agree with which of the above transactions?
5. Prepare a schedule of cost of goods sold. If done correctly, the unadjusted cost of goods sold from your schedule should agree with which of the above transactions?

Sundance Homes, Inc., produces Tiny Homes for sale to clients. The company's balance sheet accounts as of July 1, are given below. $ 75,000 115,000 $ Sundance Homes, Inc. Balance Sheet 1-Jul Assets Current assets: Cash Accounts receivable Inventories: Raw materials (wood, glass) Homes in process Finished Homes awaiting sale Prepaid expenses Total current assets Warehouse and equipment Less accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Capital stock Retained earnings Total liabilities and stockholders' equity 40,000 55,000 86,000 181,000 15,000 386,000 776.000 231,000 $ 545,000 931,000 216,000 $ $ 450,000 265,000 S 715,000 931,000 Because the Homes differ in size and in complexity of production, the company uses a job-order costing system to determine the cost of each home built. Structure manufacturing) overhead is charged to Homes on the basis of assembly hours of activity. The company's predetermined overhead rate for the year is based on a cost formula that estimated $360,000 in manufacturing overhead for an n estimated allocation base of 15,000 assembly-hours. The following transactions occurred during the year: Wood, and similar raw materials purchased on account, $192,000. Wood, glass, and other raw materials used in production, $220,000 (90% of this material was considered direct to the Homes in production, and the other 10% b. was considered indirect). c. Utility costs incurred on account in the manufacturing warehouse $86,000. glass, and Depreciation recorded on the warehouse, forklift, and other equipment, $89,000. Four-fifths of this depreciation related to production of the Homes, and the d. remainder related to equipment used in marketing and administration. e. Advertising expense incurred on account, $166,000. f. Costs for salaries and wages were incurred on account as follows: Direct labor (fabricators and production managers) $ Indirect labor (model designers, warehouse supervisor, etc.) Marketing salaries $ $ 99,000 118,000 101,000 Prepaid expenses (insurance) expired during the year, $12,000 (75% related to & production of Homes, and 25% related to marketing and administrative activities). h. Marketing and administrative expenses incurred on account, $11,600. Structure (manufacturing) overhead was applied to Homes in production. The I. company used 12,550 assembly-hours during the the year. Homes that cost $610,000 to produce according to their job cost sheets were transferred to the finished Homes warehouse to await sale and shipment. Sales for the year totaled $1,050,000 and were all on account. The total cost to k produce these Homes according their job cost sheets was $675,000 1. Collections from customers during the year totaled $970,000 Payments to suppliers on account during the year, $620,000; payments to m. employees for salaries and wages, $318,000