***********THIS IS VERBATUM FROM THE TEXT BOOK, WHAT NUMBERS CAN'T YOU SEE???!!!!*********

From the text: Cost Accounting (17th Edition) by Edward J. Vanderbeck and Maria R. Mitchell

Problem 1-6 (pages 60-61) Basic cost system; journal entries; financial statements

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 Payable $65,000

Finished Goods $120,000

Work in Progress $35,000

Materials $18,000

Building $480,000

Accumulated Depreciation Building $72,000

Factory Equipment $220,000

Accumulated Depreciation Factory Equipment $66,000

Office Equipment $60,000

Accumulated Depreciation Office Equipment $36,000

Accounts Payable $95,000

Capital Stock $250,000

Retained Earnings $504,000

$1,023,000 $1,023,000

During May, the following transactions took place:

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

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

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).

Distributed the payroll in (c).

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 uses approximately 1/5^th of the building for its offices.

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

Transferred total factory overhead costs to Work In Progress.

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

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

Collected amounts receivable in the amount of $345,000.

Paid accounts payable totaling $158,000.

Required:

Prepare journal entries to record the transactions.

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.

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