Sheridan Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each teams uniform is unique in color and design, Sheridan uses a job order costing system. On January 1, the T-accounts for some of Sheridans primary balance sheet accounts were as follows:

Sheridan Corp.designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team's uniform is unique in color and design, Sheridan uses a job order costing system. On January 1, the T-accounts for some of Sheridan's primary balance sheet accounts were as follows: Raw Materials Inventory Work in Process Inventory Beg. 13,300 Beg. 32,000 Finished Goods Inventory Cash Beg. 24,400 Beg. 39,500 Accounts Receivable Accounts Payable Beg. 59,300 Beg. 42,600 During the year, the following events occurred: 1. Sheridan purchased raw materials costing $86,400 on account. 2. Sheridan used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Sheridan maintains a single Raw Materials Inventory account.) 3. Sheridan used 33,700 hours of direct labor. The company's average direct labor rate was $8 per hour (credit Wages Payable). 4. The company's only indirect labor cost was the salary of a security guard hired to watch the company's shop after hours. The guard's annual salary was $22,100 (credit Wages Payable). 5. Other manufacturing overhead costs the company incurred on account totaled $70,500. 6. Sheridan applied $132,000 in manufacturing overhead. 7. The company completed production of goods costing $328,000. 8. The company's Cost of Goods Sold balance was $303,750 before adjusting for over- or underapplied overhead. 9. Sales revenue was $452,000 (all sales were made on account). 10. Sheridan collected $488,000 from customers. 11. The company paid accounts payable of $108,000. 12. At year-end, all wages earned during the year had been paid. Raw Materials Bal. 13300 (1) 86400 (2) 93000 Bal. 6700 Work in Process Inventory Bal. 32000 (2) 65100 (7) 328000 (3) 269600 (6) 132000 Bal. 170700 Finished Goods Inventory Bal. 24400 (7) 328000 (8) 303750 Bal. 48650 Cost of Goods Sold (8) 303750 Bal. 303750 Manufacturing Overhead (2) 27900 (6) 132000 (4) 22100 (5) 70500 Bal. 11500 Cash Bal. 39500 (10) 488000 (11) 108000 (12) 291700 Bal. 127800 Accounts Receivable Bal. 59300 (9) 452000 (10) 488000 Bal. 23300 Accounts Payable