The following trial balance was taken from the records of Zachary Manufacturing Company at the beginning of Year 3: Cash Raw materials inventory Work in process inventory Finished goods inventory Property, plant, and equipment Accumulated depreciation Common stock Retained earnings Total $ 9,450 830 1,280 2,180 8,050 $ 3,300 8,700 9,790 $21,790 $21,790 Transactions for the Accounting Period 1. Zachary purchased $5,800 of direct raw materials and $340 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 970 hours recorded in the Wages Payable account at $10.50 per hour. 4. By the end of the year, $9,285 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 $6,120 and 1,020 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 970 for the year. 6. Selling and administrative expenses for the year amounted to $900 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 $1,510. 9. There was $11,600 of goods completed during the year. 10. There was $12,900 of finished goods inventory sold for $18,300 cash. 11. A count of the production supplies revealed a balance of $94 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant. Required a. Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts. b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet. Req A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Prepare a schedule of cost of goods manufactured and sold. ZACHARY MANUFACTURING COMPANY Cost of Goods Manfactured and Sold For the Year Ended December, Year 3 Raw materials available 0 Raw materials used 0 Total manufacturing costs 0 Total work in process inventory 0 Cost of goods manufactured 0 Goods available 0 Cost of goods sold 0 Complete this question by entering your answers in the tabs belo Req A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Prepare an income statement. ZACHARY MANUFACTURING COMPANY Income Statement For the Year Ended December, Year 3 0 0 Prepare a balance sheet. (Amounts to be deducted should be ZACHARY MANUFACTURING COMPANY Balance Sheet At December, Year 3 Assets Total assets $ 0 Liabilities Equity Total equity $ 0