Fine Woods Furniture (FWF) Manufactures solid wood furniture for individual customers. Each piece of furniture has a unique design. FWF uses job order costing to attach manufacturing costs to the units. Due to the extensive use of machinery FWF uses machine hours to allocate the overhead. For the current year the estimate for overhead cost and machine time were $360,000 and 18,000 hours* respectively. *Machine hours were for 10 machines running for one eight hour shift each day for a five day week. Time was provided for regular maintenance and setups for each machine each week. During the year the following events took place: 1. Purchased wood for $ 250,000 on account. 2. Wood was requisitioned for production valued at $252,000. 3. Purchased sandpaper for $1,000 and varnish for $7000 and paid immediately. Fine Woods Furniture uses a supplies account for indirect materials. Assume that the sandpaper is a supply and the varnish is a direct material. 4. Transferred sandpaper with a purchase price of $900 and varnish with a value of $6,250 to the factory floor. 5. Paid an electric utility bill for factory power of $62,000 in cash. 6. Incurred direct-labor costs of $200,000. 7. Recorded depreciation on the plant and the machinery in the plant of $25,000. 8. Recorded insurance of $25,000 for the plant and $10,000 for the salesmen’s cars. The insurance had been prepaid. 9. Incurred indirect labor costs of $280,000. 10. Made a cash payment of $240,000 on Accounts Payable and $270,000 for wages accrued. 11. Used 17,000 machine hours during the year. 12. Finished jobs G22, 23, 25, 28 30, 40, 42, 44, at a total cost of $675,000. 13. Made sales for the year of $875,000. Half were on account and half were collected in cash. The December cost of goods sold was $570,000. 14. Closed Relevant account(s) at year end. Additional Information: Account Beg Bal. Raw Material Inventory $22,500 Manufacturing Overhead $0 Work in Process Inventory $5,000 Wages Payable $20,000 Supplies $150 Finished Goods Inventory $40,000 Cost of Goods Sold $0 Accumulated Depreciation $25,000 Plant & Equipment $100,000 Prepaid Insurance $60,000 Cash $300,000 Accounts Payable $155,000 Accounts Receivable $250,000 Common Stock $275,000 Retained Earnings $302,650 The Tax Rate is 22% Required: A. Format a Balance Sheet for the beginning of this year. B. Prepare journal entries for the transactions listed above. C. Post all transactions to the appropriate T-accounts. D. Close Manufacturing Overhead using either method and justify the method you choose. Record the journal entry and post to the T-accounts. E. Format an Income Statement for the year and then a Balance Sheet for the end of the year. F. Discuss the utility of the job-order system being used. When is it "good enough" to meet the needs of management and stakeholders and when would the information provided be insufficient?