The following trial balance was taken from the records of Baird 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 $ 9,450 820 1,200 2,180 7,850 $ 3,400 8,000 10,100 $21,500 $21,500 Transactions for the Accounting Period 1. Baird purchased $5,700 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 $5,400 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, $5,300 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 $10.40 per hour. 4. By the end of the year, $9,188 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 $920 paid in cash. 7. Utilities and rent for production facilities amounted to $4,730 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,500. 9. There was $11,700 of goods completed during the year. 10. There was $12,750 of finished goods inventory sold for $18,400 cash. 11. A count of the production supplies revealed a balance of $96 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant. 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 9,450 Beg. Bal. 0 Beg. Bal. 10. 18,400 5,300 6,030 1. 5,300 2. 9,188 4 9206. End. Bal 0 730 4,730 7. End. Bal. 7,712 0 Raw Materials Wages Payable 820 Beg. Bal. 1. Beg. Bal. 4 5,700 5,400 9,188 10,088 3. End. Bal. 1,120 0 End. Bal. 0 900 Common Stock 7. Manufacturing Overhead 4,730 5,820 5. 1,500 644 12 Beg. Bal. 8,000 8. 11. 234 End. Bal. 0 8,000 End. Bal. 0 0 Work in Process Beg. Bal. 1,200 Beg. Bal. Retained Earnings 10,100 12,750 18,400(cl) 1. 11,7009 3 5,400 10,088 5,820 820 5. End. Bal. 0 14,930 End. Bal. 10,808 0 Finished Goods Sales Revenue (cl) 18,400 18,400 10. Beg. Bal 9. 2,180 11,700 12,750 10. End. Bal. 0 0 End. Bal. 1,130 0 Production Supplies 330 234 11 Cost of Goods Sold 12,750 13,394|(cl) 1. 10. 12 644 End. Bal. 96 0 End. Bal. 0 0 Selling and Administrative Expenses Property, Plant, and Equipment 7,850 Beg. Bal. 6. 920 920|(cl) End. Bal. 7,850 0 End. Bal. 0 0 End. Bal. 96 0 End. Bal. 0 0 Property, Plant, and Equipment 7,850 Selling and Administrative Expenses 920 920 (cl) Beg. Bal. 6. End. Bal. 7,850 0 End. Bal. 0 0 Beg. Bal. Accumulated Depreciation 3,400 1,500 8. End. Bal. 0 4,900 ReqA Req B CGM Sched >
