The following trial balance was taken from the records of Perez 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 $ 9,460 850 1,300 2,190 8,150 $ 3,700 8,000 10, 250 $21,950 $21,950 Transactions for the Accounting Period 1. Perez purchased $6,600 of direct raw materials and $350 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $6,300 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, $5,330 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 960 hours recorded in the Wages Payable account at $10.40 per hour. 4. By the end of the year, $9,084 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 $6,161 and 1,010 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 960 for the year. 6. Selling and administrative expenses for the year amounted to $990 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 $1,590. 9. There was $11,300 of goods completed during the year. 10. There was $12,000 of finished goods inventory sold for $18,900 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. 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. Work in Process Retained Earnings Beg. Bal. Beg. Bal. (cl) 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. Prepare a schedule of cost of goods manufactured and sold. PEREZ 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 Prepare an income statement. PEREZ MANUFACTURING COMPANY Income Statement For the Year Ended December, Year 3 $ $ 0 GA $ 0 Prepare a balance sheet. (Amounts to be deducted should be indicated by a minus sign.) PEREZ MANUFACTURING COMPANY Balance Sheet At December, Year 3 Assets Total assets $ 0 Liabilities Equity Total equity $ 0