$\backslash$table$[[$Requirement$,\backslash$table$[[$General$],[$Journal$]],\backslash$table$[[$General$],[$Ledger$]],$Trial Balance,$\backslash$table$[[$Income$],[$Statement$]],\backslash$table$[[$Statement of$],[$SE$]],$Balance Sheet$]]$

The balance sheet is the accounting equation: Assets $=$ Liabilities $+$ Equity. Each asset and liability account is reported separately on the balance sheet.

Adjusted

$\backslash$table$[[$GREAT ADVENTURES, INCORPORATED$],[$Balance Sheet$],[$December $31,2024],[$Assets$,$Liabilities$],[$Current Assets:,Current Liabilities:$],[$Cash$,^($$ $),129,300?,$Accounts Payable,,$2,100],[$Accounts Receivable,,Interest Payable,,$2,400],[$Supplies $($Office$),*,(1,620),$Income Taxes Payable,,$14,200],[$Supplies $($Racing$),,150,$Deferred Revenue,,$32,900],[$Prepaid Rent,,$2,880,$Total Current Liabilities,,$51,600],[$Prepaid Insurance,Long$-$term Liabilities:$],[,,,$Notes Payable,,$40,000],[$Total Current Assets,,$130,710,$Total Long$-$term Liabilities,,$91,600],[$Long$-$term assets:,Stockholders' Equity$],[$Equipment $($Bikes$),*,14,600,$Common Stock,,$25,000],[$Equipment $($Kayaks$),,23,400,$Additional Paid$-$in Capital,,$0],[$Accumulated Depreciation,,$(7,600),$Retained Earnings,,$46,850],[,,0,$Total Stockholders' Equity,,$71,850],[$Total Assets,$$,161,110,$Total Liabilities and Stockholders' Equity,$$,163,450]]$Coffee Bean Incorporated $($CBI$)$ processes and distributes high$-$quality coffee. CBI buys coffee beans from around the world and

roasts, blends, and packages them for resale. Currently, the firm offers $2$ coffees to gourmet shops in $1-$pound bags. The major cost is

direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing

process. The company uses relatively little direct labor.

CBI prices its coffee at full product cost, including allocated overhead, plus a markup of $30\%.$ If its prices are significantly higher than

the market, CBI lowers its prices. The company competes primarily on the quality of its products, but customers are price conscious as

well.

Data for the current budget include factory overhead of $$3,000,000,$ which has been allocated on the basis of each product's direct

labor cost. The budgeted direct labor cost for the current year totals $$600,000.$ The firm budgeted $$6,000,000$ for purchase and use

of direct materials $($mostly coffee beans$).$

The budgeted direct costs for $1-$pound bags are as follows:

CBI's controller, Mona Clin, believes that its current product costing system could be providing misleading cost information. She has

developed this analysis of the current year's budgeted factory overhead costs:

Data regarding the current year's production for the Mona Loa and Malaysian lines follow. There is no beginning or ending direct

materials inventory for either of these coffees.

Coffee Bean has total practical capacity as noted in the table below, i$.$e$.$ processing $1,400$ purchase orders, $2,400$ setups, etc. These

are the levels of activity work that are sustainable.