Question

Hamilton Company manufactures custom cabinets. It uses a job costing system with overhead allocated based on machine hours. Budgeted factory overhead for the year 2019 was $1,232,500, and management also budgeted 85,000 machine hours for the year. The company’s tax rate is 21% (Round taxes to the nearest dollar). Below is Hamilton Company’s trial balance at the beginning of October 2019.

Hamilton Company manufactures custom cabinets. It uses a job costing system with overhead allocated based on machine hours. Budgeted factory overhead for the year 2019 was $1,232,500, and management also budgeted 85,000 machine hours for the year. The company's tax rate is 21% (Round taxes to the nearest dollar). Below is Hamilton Company's trial balance at the beginning of October 2019 Cash. $25,600 19,200 42,300 33,500 15,600 12,000 400,000 Accounts Receivable. Finished Goods Work in Process. Materials Prepaid factory Insurance.. Machinery and Equipment. Accumulated Depreciation. Accounts Payable... Additional Paid-in Capital.... Bonds Payable (Due 12/31/2024).. Common Stock.. $180,000 18,900 90,000 120,000 45,000 94,300 $548,200 Retained Earnings. Total $548,200

Answer 1

ANSWER

As per the given question,

INCOME STATEMENT For the year ended October 31 Sales Revenues 160,000 Cost of Goods Sold 100,350 Gross profit 59,650 Less Operating Expenses Research & Development Expense 7500 Selling Expense Adminstrative Expense 28000 9800 Restructuring Cost 5000 1000 Depreciation Expense Net Income Before Interest & Tax 51,300 8,350 Less Interest Expense 800 Net Income Before tax 7,550 Less Tax Expense @21 % 1,586 Net Income 5,965

T-Account Cash Accounts Receivable 25600 7900 19200 85000 3500 80000 160000 85000 4000 5800 2500 28.000 30,000 65,000 39,900 94200 Finished Goods Work in Process 42300 96000 33500 100000 38250 100000 17,300 43,500 32,550 46300 Material Prepaid Factory Insurance 4000 15600 45000 12000 42,000 12.600 8000 Machinery & Equipment Accumulated Dep. 400000 180000 10000 400000 190000 Accounts Payable Capital Stock 65000 18900 250000 42,000 7500 5000 8,400 250000

Retained Earnings Dividend Payable 2500 99300 2500 2500 96800 0 Manufacturing Overheads Restructuring Cost 6750 43,500 5000 7900 4350 3500 4000 12,700 4000 9000 5000 Rescarch & Development expense Salaries & Wages Payable 7500 30,000 30,000 7500 Interest Expense Depreciation expense 1000 800 1000 800

Sales Revenue Interest Payable 800 160000 800 160000 Cost of Goods Sold Adminstrative Expense 9800 96000 4350 100350 9800 Loan Payable Selling Expense 28000 s0000 28000 s0000

Balance Sheet Assets Cash 39,900 Accounts Receivable 94,200 Material Control 12,600 Finished Goods Inventory 46,300 Work In Process Control 32,550 Prepaid Insurance 8,000 Total Current Assets 233,550 Machinery & Equpment 400,000 Accumulated Depreciation -190000 210,000 Total Assets 443,550 Liabilities & Owner's Equity Accounts Payable Salaries & Wages Payable 8,400 Interest Payable 800 Income tax Payable Dividend Payable Total Current Liabilities 1,586 10,786 Loan Payable 80000 Total Liabilities 90,786 Common Stock 250000 102,765 Retained Earnings (123400+10807) 352765 Total Liabilities & Owner's Equity 443,550

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