The following trial balance was taken from the records of Franklin 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 $ 9,430 790 1,230 2,120 7,950 $ 3,600 8,500 9,420 $ 21,520 $21,520 Transactions for the Accounting Period 1. Franklin purchased $6,400 of direct raw materials and $390 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $6,100 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, $5,290 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 950 hours recorded in the Wages Payable account at $10.30 per hour. 4. By the end of the year, $8,885 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 $6,300 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 950 for the year. 6. Selling and administrative expenses for the year amounted to $920 paid in cash. 7. Utilities and rent for production facilities amounted to $4,680 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,560. 9. There was $11,600 of goods completed during the year. 10. There was $12,900 of finished goods inventory sold for $18,500 cash. 11. A count of the production supplies revealed a balance of $90 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 Reg B Bal Sheet 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. Cash Accounts Payable Beg. Bal. Beg. Bal. End. Bal End. Bal. Raw Materials Wages Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Manufacturing Overhead Common Stock Beg. Bal. End. Bal. End. Bal. 0 Work in Process Retained Earnings Beg. Bal. Beg. Bal. (cl) End. Bal. End. Bal. Finished Goods Sales Revenue Beg. Bal. (cl) End. Bal 0 0 End. Bal. Production Supplies Cost of Goods Sold (cl) End. Bal End. Bal. 0 0 Property, Plant, and Equipment Selling and Administrative Expenses (cl) Beg. Bal. End. Bal. End. Bal 0 0 Accumulated Depreciation Beg. Bal. End. Bal.