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

Cash	$	9,430
Raw materials inventory		810
Work in process inventory		1,220
Finished goods inventory		2,160
Property, plant, and equipment		7,900
Accumulated depreciation					$	3,900
Common stock						8,700
Retained earnings						8,920
Total	$	21,520			$	21,520

Transactions for the Accounting Period

Jordan purchased $6,400 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 $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.

By the end of the year, $5,270 of the accounts payable had been paid in cash.

During the year, direct labor amounted to 970 hours recorded in the Wages Payable account at $10.20 per hour.

By the end of the year, $8,994 of wages payable had been paid in cash.

At the beginning of the year, the company expected overhead cost for the period to be $6,222 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.

Selling and administrative expenses for the year amounted to $950 paid in cash.

Utilities and rent for production facilities amounted to $4,690 paid in cash.

Depreciation on the plant and equipment used in production amounted to $1,500.

There was $11,700 of goods completed during the year.

There was $12,150 of finished goods inventory sold for $18,600 cash.

A count of the production supplies revealed a balance of $95 on hand at the end of the year.

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

Required

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.

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