The Boston Company began operations on December 1, 2014. The company uses normal costing techniques as part of a job-order cost system. During December, the company purchased $22,000 of direct materials. The company only worked on 1 job during December, which was Job A. Costs charged to Job A during December include $6,000 for direct materials, $7,500 for direct labor, and $8,500 for applied overhead. Job A was unfinished as of December 31. There was no underapplied or overapplied overhead for December, 2014. The company charges overhead to jobs using machine hours. For the year 2015, the accountant for the company estimates that there will be 15,000 machine hours used on jobs. The accountant also estimates that there will be $120,000 of overhead cost incurred during 2015. During 2015, the company only worked on the 3 jobs. Information for actual events that happened during 2015 are as follows: Job A Job B Job C Direct Materials Cost $11,000 $ 5,000 $14,000 Direct Labor Cost $13,000 $ 7,000 $17,000 Machine Hours 6,080 hours 1,920 hours 8,000 hours Units on the job 10 units Not applicable 20 units Boston purchased $26,000 of direct material in 2015. Only Job B was unfinished as of the end of 2015. During 2015, all 10 units on Job A were sold, and 12 units of Job C were sold. In other words, 100% of Job A was sold and 60% of Job C was sold. The total sales revenue for 2015 amounted to $260,000. Other costs incurred during 2015 were as follows: Selling Expenses $32,000 Advertising Expense $29,000 Indirect Labor $57,000 Maintenance Exp.-factory $28,000 Depreciation Exp.-FG Warehouse $17,000 Indirect Materials $19,000 Administrative Expenses $20,000 Depreciation Exp.-factory $15,000

I. Task 1 Prepare, in good form, a Schedule of Cost of Goods Manufactured for the Boston Company for 2015. Remember a proper Heading for your Schedule.

II. Task 2 Prepare, in good form, an Income Statement for 2015. For purposes of this income statement, assume that all underapplied or overapplied overhead is closed totally to Cost of Goods Sold at the end of the year. Remember a proper heading for your Statement.

Job A Job B Job C

Direct Materials Cost $11,000 $ 5,000 $14,000

Direct Labor Cost $13,000 $ 7,000 $17,000

Machine Hours 6,080 hours 1,920 hours 8,000 hours

Units on the job 10 units Not applicable 20 units