Randall company manufactures products to customer specifications. a job costing system is used to accumulate production costs. factory overhead cost was applied at 125% of direct labor cost. selected data concerning the past year's operation of the company are presented below. january 1 december 31 direct materials $ 80,000 $ 43,000 work in process 69,000 45,000 finished goods 118,000 103,000 other information direct materials purchases $ 327,000 cost of goods available for sale 956,000 actual factory overhead costs 263,000 the cost of goods manufactured during the year is:

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?