Please don't give image format Perez Corporation builds sailboats. On January 1, Year 3, the company had the following account balances: $65,000 for both cash andcommon stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Perez had incurred cash costs of $5,300for labor and $4,900 for materials. During the same period, Perez paid $9,510 cash for actual manufacturing overhead costs. Thecompany expects to incur $234,000 of indirect overhead cost during Year 3. The overhead is allocated to jobs based on direct laborcost. The expected total labor cost for the year is $130,000.Perez uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materialspurchases are recorded directly in the Work in Process Inventory account.Requireda. Use the horizontal financial statements model, to record Perez's business events. The first row shows beginning balances.b. If Perez desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat?c. If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory onthe balance sheet for Boat 25?d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?Complete this question by entering your answers in the tabs below.Required A Required B Required C Required DUse the horizontal financial statements model, to record Perez's business events. The first row shows beginning balances. (Do not round intermediate calculations.Enter any decreases to account balances with a minus sign.) cost. The expected total labor cost for the year is $130,000.Perez uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materialspurchases are recorded directly in the Work in Process Inventory account.Requireda. Use the horizontal financial statements model, to record Perez's business events. The first row shows beginning balances.b. If Perez desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat?c. If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory onthe balance sheet for Boat 25?d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?Complete this question by entering your answers in the tabs below.Required A Required BRequired C Required DIs the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?The amount of inventory is< Required CRequired D >

Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…

Perez Corporation builds sailboats. On January 1, Year 3, the company had the following account balances: $65,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Perez had incurred cash costs of $5,300 for labor and $4,900 for materials. During the same period, Perez paid $9,510 cash for actual manufacturing overhead costs. The company expects to incur $234,000 of indirect overhead cost during Year 3. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $130,000. Perez uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required . Use the horizontal financial statements model, to record Perez's business events. The first row shows beginning balances. . If Perez desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? . If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25? 1. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q