Process costing system Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Eminence's operations for its first year, 2018. (Assume that all transactions are for cash unless otherwise stated.) 1. The company was started when it acquired a $47,000 cash contribution from the owners. 2. The company purchased $15,000 of direct raw materials and $400 of indirect materials. Indirect materials are capitalized in the Production Supplies account. 3. Direct materials totaling $7,000 were issued to the cutting department. 4. Labor cost was $28,200. Direct labor for the cutting and assembly departments was $10,000 and $13,000, respectively. Indirect labor costs were $5,200. 5. The predetermined overhead rate was $0.50 per direct labor dollar in each department. 6. Actual overhead costs other than indirect materials and indirect labor were $6,400 for the year. 7. The cutting department transferred $12,500 of inventory to the assembly department. 8. The assembly department transferred $20,500 of inventory to finished goods. 9. The company sold inventory costing $18,500 for $30,000. 10. Selling and administrative expenses were $3,000. 11. A physical count revealed $100 of production supplies on hand at the end of 2018 12. Assume that over- or underapplied overhead is insignificant. Required a. Record the data in T-accounts. b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. c. Close the revenue and expense accounts. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018