•  Basic Cost System; Journal Entries; Financial Statements ABC Manufacturing Co. The Post-Closing Trial Balance of ABC Manufacturing Co. at September 30 is reproduced as follows. ABC Manufacturing Co. Post-Closing Trial Balance September 20, 2011 Cash $14,000 Account Receivable $17,000 Finished Goods $24,000 Work in Process $4,000 Materials $8,000 Building $156,000 Accumulated Depreciation – Building $23,400 Factory Equipment $108,00 Accumulated Depreciation – Factory Equipment $54,000 Office Equipment $12,000 Accumulated Depreciation – Office Equipment $2,000 Account Payable $30,000 Capital Stock $170,000 Retained Earnings $61,600 Total: $343,000 $343,000 During the month of October, the following transactions took place: a. Raw Material at a cost of $60,000 and the general factory supplies costing $8,000 were purchased on account. (Materials and Supplies are recorded in the material account). b. Raw Material to be used in production costing $41,000 and miscellaneous factory supplies costing $5,500 were issued. c. Wages and salaries incurred and paid for the month were as follow: factory wages(including $3,300 indirect labor), $34,000 and selling and administrative salaries, $8,000(ignore payroll withholdings and deductions) d. Distributed the payroll in (c.) e. Depreciation was record for the month at an annual rate of 4% on the Building and the 25% on the factory equipment and the office equipment. The sales and administrative staff uses approximately one fifth of the building for its offices. f. During the month, various other expenses totaling $5,200 were incurred on account. The company has determined that one fourth of the account is allocated to the office function. g. Total factory overhead costs were transferred to Work in Process. h. During the Month, goods with a total cost of $80,000 were completed and transferred to the finished goods storeroom. i. Sales for the month totaled $150,000 for goods costing$100,000 to manufacture. (assume that all sales were made on account) j. Account receivable in the amount of $105,000 were collected. k. Account payable totaling $55,000 were paid. 
• Required: 
• 1. Prepare Journal Entries to record the transactions. 
• 2. Set up T- accounts for all listed in the September 30,2011, Post Closing Trial Balance and for Cost of Goods Sold, Factory Overhead, Selling and Administrative Expenses, Sales and Wages Payable. Post the beginning Trial Balance and the Journal Entries prepared in Part 1 to the accounts and calculate the balance in the accounts on October 31. 
• 3. Prepare a statement of Cost of Goods Manufactured, an Income Statement and Balance Sheet.