Problem 2-28B Cost Flows; T-Accounts, Income Statement [LO2-1, LO2-2, LO2-5, LO2-6, LO2-7] Brinkerhoff, Inc., designs and fabricates display units for use at conventions. The company's balance sheet as of January 1, the beginning of the current year, appears below: Brinkerhoff, Inc. Balance Sheet January 1 Assets Current assets: Cash Accounts receivable Inventories $18,500 56,000 Raw materials Work in process $49,000 41,000 56,000 146,000 8,050 228,550 355,000 $583,550 Finished goods (props awaiting shipment) Prepaid insurance Total current assets Buildings and equipment Less accumulated 620,000 265,000 depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $64,750 518,800 $583,550 $340,000 178,800 Total liabilities and stockholders' equity Because each display unit is a unique design and may require anything from a few hours to a month or more to complete, Brinkerhoff, Inc. uses a job-order costing system. Overhead in the fabrication shop is charged to display units on the basis of direct labor cost. The company's predetermined overhead rate for the year is based on a cost formula that estimated $108,900 in manufacturing overhead for an estimated allocation base of $121,000 direct labor dollars. The following transactions were recorded during the year (Assume all purchases and services were acquired on account) a. Raw materials, such as wood, paints, and metal sheeting, were purchased on account, $93,000 b. Raw materials were issued to production, $104,000; $6,700 of this amount was for indirect materials c. Payroll costs incurred and paid: direct labor, $136,000; indirect labor, $50,600; and selling and administrative salaries, $82,000 d. Fabrication shop utilities costs incurred, $15,100