QUESTION: PREPARE STATEMENT OF RETAINED EARNINGS (#7 under 'required' section only)

STUDY PROBLEM 9-3 Product- A DIRECT MATERIALS -QUANTITY PER UNIT 10 UNIT COST $25.00 TOTAL UNIT MATERIAL COST $250.00 PRODUCT LABOR HOURS PER UNIT 20 LABOR RATE PER HOUR $20.00 TOTAL UNIT LABOR COST s 400.00 APPLIED MANUFACTURING OVERHEAD UNIT COST $50.00 TOTAL PRODUCT COST 6700.00 QUANTITY TO BE PRODUCED 10,000 $ 2,100.00 SELLING PRICE - THREE TIMES UNIT COST MANUFACTURING OVERHEAD COST: DEPRECIATION UTILITIES SUPPLIES TAXES INSURANCE $250,000 50.000 100,000 50.000 50,000 ESTIMATED TOTAL COST $500,000 ESIMATED TOTAL LABOR HOURS 200,000 PREDERTERMINED OH RATE 12.50 Transactions: 1. ISSUED COMMON STOCK WORTH $ 2.500.000 2. PURCHASED ON ACCOUNT 110,000 UNITS OF RAW MATERIALS AT $25.00 EACH 3. TRANSFERRED 100,000 UNITS TO WORK IN PROCESS + INCURRED 210,000 LABOR HOURS AT $20,00 PER HOUR TO BE PAID LATER Mine was puble) 5. APPLIED MANUFACTURING OVERHEAD FOR 210,000 HOURS 6. COMPLETED 10000 UNITS WITH TOTAL LABOR AND MANUFACTURING OVERHEAD CHARGED TO 10000 COMPLETED UNITS 7. SOLD 9000 UNITS ON ACCOUNT : Depreciation is not & ACTUAL MANUFACTURING OVERHEAD INCURRED creded to cash) i. Depreciation 200.000 ii. Utilities 80,000 Hit Supplies 160.000 iv. Taxes 60.000 V. Insurance 50.000 9. PREPARE JOURNAL ENTRY FOR OVERAPPLIED/UNDERAPPLIED OVERHEAD IF ANY 10. SELLING EXPENSES INCURRED IS 10% OF TOTAL SALES - PAID IN CASH 11. OFFICE EXPENSES INCURRED IS 1,000,000 - PAID IN CASH REQUIRED: 1 COMPLETE JOURNAL ENTRIES 2. POST JOURNAL ENTRIES TO THE LEDGER 3. PREPARE TRIAL BALANCE 4. PREPARE COST OF GOODS MANUFACTURED STATEMENT 5. PREPARE COST OF GOODS SOLD STATEMENT S. PREPARE INCOME STATEMENT 7. PREPARE STATEMENT OF RETAINED EARNINGS 8. PREPARE BALANCE SHEET