Required: 1. 2. Prepare journal entries to record the preceding transactions. Post your entries to T-accounts for raw materials inventory, work in process inventory, finished goods inventory, manufacturing overhead, and cost of goods sold. (Don't forget to enter the beginning Inventory balances above.) Calculate the ending balances in the T-accounts. 3. Prepare a schedule of cost of goods manufactured. (Remember your statement headings) Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods 4A Sold. 4B. Prepare a schedule of cost of goods sold. (Remember your statement headings) 5. Prepare an income statement. (Remember your statement headings) Required: 1. 2. Prepare journal entries to record the preceding transactions. Post your entries to T-accounts for raw materials inventory, work in process inventory, finished goods inventory, manufacturing overhead, and cost of goods sold. (Don't forget to enter the beginning Inventory balances above.) Calculate the ending balances in the T-accounts. 3. Prepare a schedule of cost of goods manufactured. (Remember your statement headings) Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods 4A Sold. 4B. Prepare a schedule of cost of goods sold. (Remember your statement headings) 5. Prepare an income statement. (Remember your statement headings) Required: 1. 2. Prepare journal entries to record the preceding transactions. Post your entries to T-accounts for raw materials inventory, work in process inventory, finished goods inventory, manufacturing overhead, and cost of goods sold. (Don't forget to enter the beginning Inventory balances above.) Calculate the ending balances in the T-accounts. 3. Prepare a schedule of cost of goods manufactured. (Remember your statement headings) Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods 4A Sold. 4B. Prepare a schedule of cost of goods sold. (Remember your statement headings) 5. Prepare an income statement. (Remember your statement headings) Problem 4-Journal Entries; T-Accounts; Financial Statements - Big-Tough-Motor-Works, is a small company that manufactures custom ordered heavy equipment. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1,100 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $240,000. b. Raw materials used in production (all direct materials), $225,000. c. Utility bills incurred on account, $68,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,175 hours) Indirect labor $265,000 $ 102,000 Selling and administrative salaries $ 104,000 a. Maintenance costs incurred on account in the factory, $60,000 b. Advertising costs incurred on account, $133,000. c. Depreciation was recorded for the year, $94,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). d. Rental cost incurred on account, $116,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). e. Manufacturing overhead cost was applied to jobs, $ ? f. Cost of goods manufactured for the year, $860,000. g. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job