TEAMWORK IN ACTION LO3-10, 103-2, L03-40 After a dispute concerning wages, Orville Arson tossed an incendiary device into the Sparkle Company's record vault. Within moments, only a few charred fragments were readable from the company's factory ledger, as shown below: Raw Materials Manufacturing Overhead Balance 41 12000 Actus costs for April 14 DO Accounts Payable Work in Process 4.500 Balance 41 Balance/ XO Finished Goods Cost of Goods Sold Balance / 16 Sifting through ashes and interviewing selected employees has turned up the following additional information The controller remembers clearly that the predetermined overhead rate was based on an estimated 60.000 direct labor hours to be worked over the year and an estimated $180.000 in manufacturing owerhead costu by the production superintendent's cost oboets showed only one job in process on April 30. Materials of 2.600 had been added to the job, and 300 direct labor hours had been expended at 6 per hour c. The accounts payable are for raw material purchases only, according to the accounts payable clerk. He clearly remembers that the balance in the account was $6,000 on April 1. An analysis of canceled checks (kept in the treasurer's office) shows that payments of $40,000 were made to suppliers during April. (All materials used during April were girect materials.) d. A charred piece of the payroll ledger shows that 5,200 direct labor-hours were recorded for the month. The personnel department has verified that there were no variations in pay rates among employees, e Records maintained in the finished goods warehouse indicate that the finished goods inventory totaled $11,000 on April 1. f. From another charred piece in the vault, you are able to discern that the cost of goods manufactured for April was $89.000, Required: 1. Assign one of the following sets of accounts to each member of the team a. Raw Materials and Accounts Payable. b. Work in Process and Manufacturing Overhead, e. Finished Goods and Cost of Goods Sold. Determine the types of transactions that would be posted to each account and present a summary to the other team members. When agreement is reached the team should work together to complete steps a through 4 2. Determine the company's predetermined overhead rate and the total manufacturing overhead applied for the month 3. Determine the April 30 balance in the company's Work in Process account 4. Prepare the company's accounts for the month (it is easiest to complete the accounts in the following order: Accounts Payable, Work in Process, Raw Materials, Manufacturing Overhead, Finished Goods, Cost of Goods Sold)