Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,887,000 of fixed manufacturing overhead for an estimated allocation base of 288,700 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory. The company's beginning balance sheet is as follows:

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Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relles on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-t does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,887000 of fixed manufacturing overhead for an estimated allocation base of 288,700 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows: Wallis Company Balance Sheet 1/1/XX Idollars in thousands) Assets Cash 770 Raw materials inventory 220 Finished goods inventory 340 Property, plant, and equipment, net 9,200 Total assets 510, 530 Liabilities and Equity Retained earnings $10,538 Total liabilities and equity $10,530 The company's standard cost card for its only product is as follows: (1) (2) Standard Standard Quantity Price Inputs or Hours or Rate Direct materials 2 pounds $ 31,40 per pound Direct labor 3.00 hours $14.00 per hour Fixed manufacturing overhead 3.00 hours $ 10.00 per hour Total standard cost per unit Standard Cost (1) x (2) $ 62.80 42.00 30.00 $134.80 During the year Wallis completed the following transactions During the year Wallis completed the following transactions: a. Purchased (with cash) 233,500 pounds of raw material at a price of $30.20 per pound b. Added 216,750 pounds of raw material to work in process to produce 95,700 units c Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 246,400 hours at an average cost of $16.00 per hour to manufacture 95,700 units. d. Applied fixed overhead to work in process inventory using the predetermined overhead rate multiplied by the number of direct labor hours allowed to manufacture 95,700 units. Actual fixed overhead costs for the year were $2743,500 of this total, $1,347,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,396,500 related to depreciation of equipment e. Transferred 95,700 units from work in process to finished goods. 4 Sold (for cash) 92.700 units to customers at a price of $170 per unit. 9. Transferred the standard cost associated with the 92.700 units sold from finished goods to cost of goods sold. h Paid $2,123,500 of selling and administrative expenses L. Closed all standard cost variances to cost of goods sold. Required: 1. Compute all direct materials, direct labor, and fixed overhead variances for the year. 2. Record transactions a through for Wallis Company 3. Compute the ending balances for Wallis Company's balance sheet 4. Prepare Wallis Company's income statement for the year Return to question Record transactions a through for Wallis Company Compute the ending balances for Wallis Company's balance sheet. (Unfavorable variances and decreases in balance sheet accounts should be entered with a minus sign Enter your dollars in thousands rounded to the nearest thousand Wallis Company Transaction Analysis For the Year Ended 1291xx (dollars in thousands Materials Material Price Quantity Variance Variance Cash Raw Materials Workin Process Finished Goods PPSE Labor Rate Variance Labor Efficiency Varlance Fixed Overhead Budget Variance 1/1 $ $ 220 5 3405 7703 (7.052) 9.2001 (3.942) (1347) d 15.759 0 (2124) 1231 1 2.064 $ 0 $ OS 00 o ousands rounded to the nearest thousand.) or Rate riance Labor Efficiency Variance Fixed Overhead Budget Variance Fixed Overhead Volume Variance Retained Earnings $ 10,530 GA 0 $ Reg 4 >