The following Balance Sheet was taken from the records of Campbell Manufacturing Company at the beginning of Year 3. Balance Sheet as of January 1, Year 2 Assets Cash Raw materials inventory Work in process inventory $ 9,430 850 1,280 Finished goods inventory Property, plant, and equipment (net) Total Assets 2,140 8,350 $ 22,050 Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity 8,500 10,250 $ 22,050 Transactions for the Accounting Period 1. Campbell purchased $5,800 of direct raw materials and $330 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,500 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand. 2. By the end of the year, $5,320 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 980 hours recorded in the Wages Payable account at $10.30 per hour. 4. By the end of the year, $9,194 of wages payable had been paid in cash. 5. At the beginning of the year, the company expected overhead cost for the period to be $6,180 and 1,030 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 980 for the year. 6. Selling and administrative expenses for the year amounted to $970 paid in cash. 7. Utilities and rent for production facilities amounted to $4,670 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,530. 9. There was $11,500 of goods completed during the year. 10. There was $12,150 of finished goods inventory sold for $18,300 cash. 11. A count of the production supplies revealed a balance of $99 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant. Required Req A Req B1 Req B2 Req B3 Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries (using one entry) in the T-accounts. Cash Accounts Payable Debit Credit Debit Credit Beginning Balance 10. 9,430 18,300 Beginning Balance 5,320 2. 2. 5,320 6,130 1. 9,194 4. 970 6. 4,670 7. Ending Balance 0 810 Ending Balance 7,576 0 Debit Beginning Balance 1. Ending Balance Debit 17. 8. 11. Raw Materials Wages Payable Credit Debit Credit 850 Beginning Balance 5,800 5,500 1. 4. 9,194 10,094 3. 1,150 0 Ending Balance 0 900 Manufacturing Overhead Common Stock Debit Credit 4,670 5,880 5. Beginning Balance 1,530 12. 231 Ending Balance Ending Balance 551 Credit 8,500 0 8,500 Debit Beginning Balance 1. 3. 5. Ending Balance Work in Process Retained Earnings Credit Debit 1,280 Beginning Balance 5,500 11,500 9. 10,094 Ending Balance Credit 10,250 Closing 0 10,250 5,880 11,254 0 Finished Goods Debit Credit 2,140 Closing 11,500 12,150 10. Ending Balance Beginning Balance 9. Ending Balance Debit 1. Ending Balance 1,490 Production Supplies 0 Sales Revenue Debit Credit 18,300 0 18,300 10. 0 Credit Debit 330 231 11. 10. 12. 99 0 Property, Plant, and Equipment Debit Beginning Balance Ending Balance 8,350 Ending Balance Credit 6. Ending Balance 8,350 0 Cost of Goods Sold 12,150 0 0 Credit Closing Selling and Administrative Expenses Debit 970 Credit 970 Closing 12,150 Property, Plant, and Equipment Debit Beginning Balance Ending Balance Debit Beginning Balance 8,350 8,350 Accumulated Depreciation Credit 6. Ending Balance 0 Credit 1,530 8. Ending Balance 0 1,530 Selling and Administrative Expenses Debit Credit 970 12,150 970 Closing Req A Req B1 Req B2 Req B3 Prepare a schedule of cost of goods manufactured and sold. CAMPBELL MANUFACTURING COMPANY Cost of Goods Manfactured and Sold For the Year Ended December, Year 3 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available Cost of goods sold 0 0 0 0 0 0 0 Prepare an income state FAIRPORT MANUFACTURING COMPANY Income Statement For the Year Ended December, Year 3 $ 0 $ 0 Assets CAMPBELL MANUFACTURING COMPANY Balance Sheet At December, Year 3 Total assets Liabilities $ 0 Stockholders' equity Total stockholders' equity $ 0