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The adjusted account balances of Pina Colada Corp. at December 31, 2017, includes the following accounts:
Retained Earnings $16,407,
Dividends $5,584,
Service Revenue $35,280,
Salaries and Wages Expense $14,205,
Insurance Expense $1,752,
Rent Expense $3,809,
Supplies Expense $1,432, and
Depreciation Expense $962.
Question 1: Prepare income statement for the year.
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Calculate the company's predetermined overhead application rate. Calculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead.
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