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Tabor Company had the following account balances on January 1, 2020: Raw Materials Inventory $ 42,000...

Tabor Company had the following account balances on January 1, 2020: Raw Materials Inventory $ 42,000 Work in Process Inventory $ 87,000 Finished Goods Inventory $ 93,000 During 2020, the following transactions took place: 1. Raw materials costing $75,000 were purchased on account. 2. Raw materials costing $96,000 were issued to the factory, of which $70,000 is considered to be direct material cost. 3. Total factor labor costs for the period were $150,000 of which $120,000 is considered to be direct labor cost. 4. The following other factory overhead costs were incurred: Factory utilities (paid in cash) $32,000; factory depreciation $64,000; and miscellaneous factory costs (incurred on account) $53,000. 5. Units costing a total of $250,000 were completed. 6. Units costing $240,000 were sold on account for $500,000.

INSTRUCTIONS: A. Complete a cost flow diagram (T-accounts attached) for 2020.

B. Prepare the journal entries to record ALL of the 2020 transactions listed above.

C. Prepare a manufacturing statement and a partial income statement.

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Expert Solution

ekkarill92 answered 2 years ago
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