The following trial balance was taken from the records of Perez Manufacturing Company at the beginning of Year 3:

Cash	$	9,450
Raw materials inventory		840
Work in process inventory		1,230
Finished goods inventory		2,160
Property, plant, and equipment		7,700
Accumulated depreciation					$	3,300
Common stock						8,100
Retained earnings						9,980
Total	$	21,380			$	21,380

Transactions for the Accounting Period

1. Perez purchased $6,500 of direct raw materials and $310 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $6,200 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, $5,260 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 $10.10 per hour.

4. By the end of the year, $8,998 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 $980 paid in cash.

7. Utilities and rent for production facilities amounted to $4,720 paid in cash.

8. Depreciation on the plant and equipment used in production amounted to $1,600.

9. There was $11,200 of goods completed during the year.

10. There was $12,600 of finished goods inventory sold for $18,900 cash.

11. A count of the production supplies revealed a balance of $97 on hand at the end of the year.

12. Any over- or underapplied overhead is considered to be insignificant.

Required

1. 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.

2. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet .

Complete this question by entering your answers in the tabs Req B Req B Inc Req B Bal Req A CGM Stmt Sheet Prepare a schedule of ( Req B Inc Stmt actured and sold. PEREZ MANUFACTURING COMPANY Cost of Goods Manfactured and Sold For the Year Ended December, Year 3 Beginning raw materials $ 840 inventory Purchases 6,500 Raw materials available 7,340 Ending raw materials 1,140 inventory Raw materials used 6,200 Labor 9,898 Manufacturing overhead 5,880 Total manufacturing costs 21,978 Beginning work in process 1,230 inventory Total work in process inventory 23,208 Ending work in process 17,628 inventory Cost of goods manufactured 5,580 Beginning finished goods 2,160 inventory Goods available 7,740 Ending finished goods 13,360 inventory Cost of goods sold (5,620)