CROSBY, INC.
2017 Income Statement

Sales $746,000
Costs 581,000
Other expenses 17,000
Earnings before interest and taxes $ 148,000
Interest paid 13,000
Taxable income $ 135,000
Taxes (23%) 31,050
Net income $ 103,950
Dividends $ 31,185
Addition to retained earnings 72,765

CROSBY, INC.
Balance Sheet as of December 31, 2017

Assets Liabilities and Owners' Equity
Current assets Current liabilities
Cash $ 20,540 Accounts payable $ 54,700
Accounts receivable 43,480 Notes payable 13,900
Inventory 90,960 Total $ 68,600
Total $ 154,980 Long-term debt $ 129,000
Fixed assets Owners' equity
Net plant and- Common stock and-
equipment $422,000 paid-in surplus $114,000
Retained earnings 265,380
Total $379,380
Total assets $576.980 Total liabilities and
owners' equity $576,980

In 2017, the firm operated at 75 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round intermediate calculations.)

Required information problem 15-1a production costs computed and recorded; reports prepared lo c2, p1, p2, p3, p4 [the following information applies to the questions displayed below. marcelino co.'s march 31 inventory of raw materials is $84,000. raw materials purchases in april are $540,000, and factory payroll cost in april is $364,000. overhead costs incurred in april are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. the predetermined overhead rate is 50% of direct labor cost. job 306 is sold for $670,000 cash in april. costs of the three jobs worked on in april follow. job 306 job 307 job 308 balances on march 31 direct materials $30,000 $36,000 direct labor 25,000 14,000 applied overhead 12,500 7,000 costs during april direct materials 133,000 210,000 $100,000 direct labor 105,000 150,000 101,000 applied overhead ? ? ? status on april 30 finished (sold) finished in process (unsold) required: 1. determine the total of each production cost incurred for april (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from march 31). a-materials purchases (on credit). b-direct materials used in production. c-direct labor paid and assigned to work in process inventory. d-indirect labor paid and assigned to factory overhead. e-overhead costs applied to work in process inventory. f-actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) g-transfer of jobs 306 and 307 to finished goods inventory. h-cost of goods sold for job 306. i-revenue from the sale of job 306. j-assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions. 3. prepare a schedule of cost of goods manufactured. 4.1 compute gross profit for april. 4.2 show how to present the inventories on the april 30 balance sheet.