Vernon Corporation builds sailboats On January 1, 2019, the company had the following account balances $90,000 for both cash and common stock Boat 25 was started on February 10 and finished on May 31 To build the boat, Vernon had incurred cash costs of $5,100 for labor and $3,650 for materials During the same period, Vernon paid $10,170 cash for actual manufacturing overhead costs The company expects to incur $260,000 of indirect overhead cost during 2019 The overhead is allocated to jobs based on direct labor cost The expected total labor cost for the year is $130,000 Vernon uses a just in time inventory management system Consequently, it does not have raw materials inventory Raw materials purchases are recorded directly in the Work in Process Inventory account Required Use the horizontal financial statements model, to record Vernons business events The first row shows beginning balances If Vernon desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat If the boat is not sold by year end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25 Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat Use the horizontal financial statements model, to record Vernons business events The first row shows beginning balances (Do not round intermediate calculations Enter any decreases to account balances with a minus sign ) Assets Equity Cash Work in Process Finished Goods Manufacturing Overhead Common Stock Retained earnings Revenue Expense Net Income 90,000 90,000 90,000 0 0 0 90,000 0 0 0 0 If Vernon desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat (Do not round intermediate calculations Round your final answer to 2 decimal places ) Desired price If the boat is not sold by year end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25 (Do not round intermediate calculations ) Work in process inventory Finished goods inventory Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat The amount of inventory is

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Vernon Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $90,000 for both cash and common stock. Boat 25 was

Vernon Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $90,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Vernon had incurred cash costs of $5,100 for labor and $3,650 for materials. During the same period, Vernon paid $10,170 cash for actual manufacturing overhead costs. The company expects to incur $260,000 of indirect overhead cost during 2019. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $130,000.

Vernon uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.

Required

Use the horizontal financial statements model, to record Vernons business events. The first row shows beginning balances.
If Vernon desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat?
If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25?

Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?

Use the horizontal financial statements model, to record Vernons business events. The first row shows beginning balances. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)

Assets

Equity

Cash

Work in Process

Finished Goods

Manufacturing Overhead

Common Stock

Retained earnings

Revenue

Expense

Net Income

90,000

If Vernon desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Desired price

If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25? (Do not round intermediate calculations.)

Work in process inventory

Finished goods inventory

Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?

The amount of inventory is