P1-4 Basic cost system; journal entries; financial statements similar to Self-Study Problem 1 The post-closing trial balance of Beamer Manufacturing Co. on April 30 is reproduced as follows: Beamer Manufacturing Co. Post-Closing Trial Balance April 30, 2011 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 Finished Goods ……………………………. 120,000 Work in Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 504,000 $ 1,023,000 $ 1,023,000 During the month of 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, the payments to employees, and the distribution of the wages and salaries earned for the month 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. 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 one-fifth of the building for its offices. e. Incurred various other expenses totaling $11,000. One-fourth of this amount is allocable to the office function. f. Transferred total factory overhead costs to Work in Process. LO4 LO5 56 Principles of Cost Accounting g. Completed and transferred goods with a total cost of $91,000 to the finished goods storeroom. h. Sold goods costing $188,000 for $362,000. (Assume that all sales were made on account.) i. Collected accounts receivable in the amount of $345,000. j. 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.)