The post-closing trial balance of Custer Products, Inc. on April 30 is reproduced as follows:

Custer Products, Inc. Post-Closing Trial Balance April 30, 2016

Cash	25,000
Accounts Receivable	65,000
Finished Goods	120,000
Work in Proces	35,000
Materials	18,000
Building	480,000
Accumulated DepreciationBuilding		72,000
Factory Equipment	220,000
Accumulated DepreciationFactory Equipment		66,000
Office Equipment.	60,000
Accumulated DepreciationOffice Equipment		36,000
Accounts Payable		95,000
Capital Stock		250,000
Retained Earnings		504,000
Total	1,023,000	1,023,000

During May, the following transactions took place:

a. Purchased raw materials at a cost of $45,000 and general factory supplies at a cost of $13,000 on account (recorded materials and supplies in the materials account).

b. Issued raw materials to be used in production, costing $47,000, and miscellaneous factory supplies costing $15,000.

c. Recorded the payroll and the payments to employees as follows: factory wages (including $12,000 indirect labor), $41,000; and selling and administrative salaries, $7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll withholdings and deductions.)

d. Distributed the payroll in (c).

e. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the office equipment. The sales and administrative staff use approximately one-fifth of the building for its offices.

f. Incurred other expenses totaling $11,000. One-fourth of this amount is allocable to the office function.

g. Transferred total factory overhead costs to Work in Process.

h. Completed and transferred goods with a total cost of $91,000 to the finished goods storeroom.

i. Sold goods costing $188,000 for $362,000. (Assume that all sales were made on account.)

j. Collected accounts receivable in the amount of $345,000.

k. Paid accounts payable totaling $158,000.

Required: 1. Prepare journal entries to record the transactions.

2. Set up T-accounts. Post the beginning trial balance and the journal entries prepared in (1) to the accounts and determine the balances in the accounts on May 31.

3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet. (Round amounts to the nearest whole dollar.)