The following trial balance was taken from the records of Leggett Manufacturing Company at the beginning of 2015. Cash $ 9,420 Raw materials inventory 800 Work in process inventory 1,260 Finished goods inventory 2,130 Property, plant, and equipment 8,050 Accumulated depreciation $ 3,700 Common stock 8,500 Retained earnings 9,460 Total $ 21,660 $ 21,660 Transactions for the Accounting Period 1. Leggett purchased $5,800 of direct raw materials and $300 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,500 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, $5,270 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 810 hours recorded in the Wages Payable account at $10.10 per hour. 4. By the end of the year, $7,281 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 $5,160 and 860 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 810 for the year. 6. Selling and administrative expenses for the year amounted to $930 paid in cash. 7. Utilities and rent for production facilities amounted to $4,710 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 $12,300 of finished goods inventory sold for $18,000 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. (Note: Open new T-accounts as needed.).

cash raw materials

beg. bal. beg.bal.

end.bal end.bal.

work in process

beg.bal.

end. bal

accounts payable

beg. bal.

end.

common stock

beg. bal.

end. bal.

property, plant, and equipment

beg.bal.

end. bal.

wages payable

beg.bal

end.bal.

retained earning

beg. bal. (cl)

accumulated deprivation

beg. bal. end. bal.

finished goods

beg. bal.

end. bal.

sales revenue

(cl) end. bal.

manufacturing overhead

end. bal.

cost of goods sold

(cl)

production supplies

end. bal.

selling and administrative expenses

end. bal. (cl)

b-1. Prepare a schedule of cost of goods manufactured and sold LEGGETT MANUFACTURING COMPANY

Cost of goods manufacturing and sold for 2015

raw materials available

raw materials used

total manufacturing costs

total work in process inventory

cost of goods manufactured

goods available

cost of goods sold

b-2. Prepare the income statement.

LEGGETT MANUFACTURING COMPANY Income statement for 2015

Sales revenue

cost of goods sold

gross margin

selling and administ. net income

b-3. Prepare the balance sheet. (Negative amounts should be indicated by minus sign.) LEGGETT MANUFACTURING COMPANY Balance sheet for 2015

assets

total assets

liabilities

equity

total equity