Almeda Products, Inc., uses a job-order cost system. The company's inventory balances on April 1 , the start (3) Underapplied by $4,000 of its fiscal year, were as follows:

Required:
1. Prepare journal entries to record the transactions for the year.
2. Prepare T-accounts for Raw Materials. Work in Process. Finished Goods. Manufacturing Overhead, and Cost of Goods Sold. Post the appropriate parts of your journal entries to these T-accounts. Compute the ending balance in each account. (Don't forget to enter the beginning balances in the inventory accounts.)
3. Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close this balance to Cost of Goods Sold.
4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufactured;
all of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)

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Raw materials $32,000 Work in process Finished goods $20,000 $48,000