Q1. The following data were extracted from the trial balance of ABC manufacturing company on Jan 1st 2019: Cost elements DM beginning balance DM ending balance WIP beginning balance WIP ending balance FG beginning balance FG ending balance Advertising expenses Offices utilities Machines insurance Cost 100,000 80,000 40,000 60,000 250,000 210,000 140,000 10,000 8,000 Cost elements DM purchased Direct labor Indirect labor Indirect material used Factory depreciation Offices depreciations Machines lubricants Factory utilities Factory rent Cost 500,000 340,000 110,000 60,000 75,000 15,000 12,000 18,000 35,000 Required: 1. Prepare the cost of goods manufactured schedule. 2. Prepare the income statement knowing that sales revenues was 2,500,000. Q2. On 30th of March 2020, a fire occurred in ABC manufacturing company that caused missing the data from all the records. However, accountants were able to recover the following data regarding the first quarter: Cost elements DM 1/1 Prime Cost DM purchased CGM DL (60% of the conversion cost) DM 31/3 Manufacturing OH WIP - 1/1 WIP - 31/3 Cost 25,000 315,000 175,000 425,000 180,000 ? ? 15,000 ? Cost elements FG-1/1 FG-31/3 Sales Revenues Gross Profit Selling expenses Administrative expenses Operating income Cost 70,000 ? 1,000,000 600,000 120,000 ? 350,000 Required: Using the available recovered data, can you help ABC Company to prepare the cost of goods manufactured schedule and the income statement for the first quarter of 2020. Q3. On the 1st of Jan 2020, ABC Company had the following jobs under process: Job M150 with $150,000 cost, Job M153 with $232,000 cost, and Job M160 with $99,000 cost. The company also had Job M157 with a total cost of $364,000 in the finished goods inventory. During 2020, the following events occurred: - Purchased direct material for $2,000,000 in cash. Issued $1,850,000 DM to jobs as follow: Job M150 $70,000, Job M160 $140,000, Job M161 $200,000, Job M162 $235,000, Job M163 $342,000, Job M164 $175,000, Job M165 $330,000, Job M166 $267,000, and Job M167 $91,000. Incurred the following DLH on jobs based on $15/DLH as a direct labor cost: Job M150 8,000 DLH, Job M153 5,000 DLH, Job M160 11,000 DLH, Job M161 10,000 DLH, Job M162 15,000 DL, Job M163 20,000 DLH, Job M164 7,000 DLH, Job M165 18,000 DLH, Job M166 12,000 DLH, and Job M167 4,000 DLH. Estimated MOH for 2020 was $800,000 and the estimated DLH were 100,000 DLH. The actual MOH that incurred during 2020 were as follow: Ind. M $150,000, Ind. L $340,000, machine and equipment depreciation $180,000, factory rent $70,000, factory utilities $45,000, factory power $60,000, and factory miscellaneous expenses $20,000. During 2020, jobs M150, M153, M160, M161, M162, M163, M164, and M165 were completed and transferred to finished goods account. Jobs M150, M153, M157, M160, M161, M162, M163, M165 were submitted to the customers during 2020 with $5,000,000 total sales revenues. Operating expenses during 2020 were; $360,000 selling expenses and $480,000 administrative expenses. Required: 1. Journalize the required entries for all transaction occurred during 2020. 2. Prepare T accounts for all jobs and for WIP, FG and CGS. 3. Show the accounting treatment for the MOH differences using the materiality concept. 4. Prepare CGM schedule and CGS