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Student name:__________
1) Venzke Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on January 1 appears below:
Venzke Corporation
Balance Sheet
January 1
Assets:
Cash $ 13,000
Raw materials $ 8,000
Work in process 14,000
Finished goods 18,000 40,000
Property, plant, and equipment (net) 243,000
Total assets $296,000
Liabilities and Stockholders’ Equity:
Accounts payable $ 10,000
Retained earnings 286,000
Total liabilities and stockholders’ equity $296,000
Summaries of the transactions completed during January appear below:
(1) Raw materials purchased on account $ 61,000
(2) Raw materials used in production (direct materials) $ 49,000
(3) Raw materials used in production (indirect materials) $ 7,000
(4) Direct labor paid in cash $ 60,000
(5) Indirect labor paid in cash $ 23,000
(6) Selling and administrative salaries paid in cash $ 35,000
(7) Factory utility costs (on account) $ 11,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 6,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 2,000
(10) Advertising expenses paid in cash $ 12,000
(11) Manufacturing overhead applied to production $ 44,000
(12) Cost of goods manufactured $145,000
(13) Cash sales $224,000
(14) Cost of goods sold $153,000
(15) Cash payments to creditors $ 70,000
(16) Overapplied (underapplied) overhead ?
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Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process
Finished Goods Manufacturing Overhead Property,
plant, and equipment (net) = Accounts Payable Retained
Earnings
Beginning balances, January 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash
=
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured
=
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(13) Cash sales =
(14) Cost of goods sold =
(15) Cash payments to creditors
=
(16) Overapplied (underapplied) overhead
=
Ending balances at January 31
b. Prepare a Balance Sheet for the company for January 31.
2) Angeloni Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on July 1 appears below:
Angeloni Corporation
Balance Sheet
July 1
Assets:
Cash $ 12,000
Raw materials $ 6,000
Work in process 13,000
Finished goods 16,000 35,000
Property, plant, and equipment (net) 234,000
Total assets $281,000
Liabilities and Stockholders’ Equity:
Retained earnings $281,000
Total liabilities and stockholders’ equity $281,000
Summaries of the transactions completed during July appear below:
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(1) Raw materials purchased for cash $ 68,000
(2) Raw materials used in production (direct materials) $ 56,000
(3) Raw materials used in production (indirect materials) $ 11,000
(4) Direct labor paid in cash $100,000
(5) Indirect labor paid in cash $ 20,000
(6) Selling and administrative salaries paid in cash $ 39,000
(7) Factory utility costs paid in cash $ 11,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 1,000
(10) Advertising expenses paid in cash $ 14,000
(11) Manufacturing overhead applied to production $ 48,000
(12) Cost of goods manufactured $196,000
(13) Cash sales $283,000
(14) Cost of goods sold $202,000
(15) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished
Goods Manufacturing Overhead Property, plant, and
equipment (net) = Retained Earnings
Beginning balances, July 1
=
(1) Raw materials purchased for cash
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash
=
(5) Indirect labor paid in cash
=
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs paid in cash
=
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(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured
=
(13) Cash sales =
(14) Cost of goods sold =
(15) Overapplied (underapplied) overhead
=
Ending balances at July 31
b. Prepare a Schedule of Cost of Goods Sold for the company for July.
c. Prepare an Income Statement for the company for July.
3) Sandra Corporation uses a job-order costing system to assign manufacturing costs to jobs.
At the end of the month it closes out any overapplied or underapplied manufacturing overhead to
Cost of Goods Sold. Its balance sheet on January 1 appears below:
Sandra Corporation
Balance Sheet
January 1
Assets:
Cash $ 17,000
Raw materials $ 7,000
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Work in process 11,000
Finished goods 16,000 34,000
Property, plant, and equipment (net) 218,000
Total assets $269,000
Liabilities and Stockholders’ Equity:
Retained earnings $269,000
Total liabilities and stockholders’ equity $269,000
Summaries of the transactions completed during January appear below:
(1) Raw materials purchased for cash $ 81,000
(2) Raw materials used in production (direct materials) $ 64,000
(3) Raw materials used in production (indirect materials) $ 10,000
(4) Direct labor paid in cash $ 77,000
(5) Indirect labor paid in cash $ 21,000
(6) Selling and administrative salaries paid in cash $ 39,000
(7) Factory utility costs paid in cash $ 15,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 3,000
(10) Advertising expenses paid in cash $ 15,000
(11) Manufacturing overhead applied to production $ 58,000
(12) Cost of goods manufactured $193,000
(13) Cash sales $278,000
(14) Cost of goods sold $204,000
(15) Overapplied (underapplied) overhead ?
Required:
Complete the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Retained Earnings
Beginning balances, January 1 =
(1) Raw materials purchased for cash
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
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(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs paid in cash
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
(14) Cost of goods sold =
(15) Overapplied (underapplied) overhead
=
Ending balances at January 31
4) Sandra Corporation uses a job-order costing system to assign manufacturing costs to jobs.
At the end of the month it closes out any overapplied or underapplied manufacturing overhead to
Cost of Goods Sold. Its balance sheet on January 1 appears below:
Sandra Corporation
Balance Sheet
January 1
Assets:
Cash $ 17,300
Raw materials $ 7,300
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Work in process 11,300
Finished goods 16,300 34,900
Property, plant, and equipment (net) 218,300
Total assets $270,500
Liabilities and Stockholders’ Equity:
Retained earnings $270,500
Total liabilities and stockholders’ equity $270,500
Summaries of the transactions completed during January appear below:
(1) Raw materials purchased for cash $ 81,300
(2) Raw materials used in production (direct materials) $ 64,300
(3) Raw materials used in production (indirect materials) $ 10,150
(4) Direct labor paid in cash $ 77,300
(5) Indirect labor paid in cash $ 21,300
(6) Selling and administrative salaries paid in cash $ 39,300
(7) Factory utility costs paid in cash $ 15,300
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,300
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 3,300
(10) Advertising expenses paid in cash $ 15,300
(11) Manufacturing overhead applied to production $ 58,900
(12) Cost of goods manufactured $193,300
(13) Cash sales $284,000
(14) Cost of goods sold $204,300
(15) Overapplied (underapplied) overhead ?
Required:
Complete the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Retained Earnings
Beginning balances, January 1 =
(1) Raw materials purchased for cash
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
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(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs paid in cash
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
(14) Cost of goods sold =
(15) Overapplied (underapplied) overhead
=
Ending balances at January 31
5) Wessendorf Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on January 1 appears below:
Wessendorf Corporation
Balance Sheet
January 1
Assets:
Cash $ 18,000
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Raw materials $ 8,000
Work in process 14,000
Finished goods 16,000 38,000
Property, plant, and equipment (net) 201,000
Total assets $257,000
Liabilities and Stockholders’ Equity:
Retained earnings $257,000
Total liabilities and stockholders’ equity $257,000
Summaries of the transactions completed during January appear below:
(1) Raw materials purchased for cash $ 86,000
(2) Raw materials used in production (direct materials) $ 75,000
(3) Raw materials used in production (indirect materials) $ 10,000
(4) Direct labor paid in cash $ 66,000
(5) Indirect labor paid in cash $ 21,000
(6) Selling and administrative salaries paid in cash $ 40,000
(7) Factory utility costs paid in cash $ 11,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 3,000
(10) Advertising expenses paid in cash $ 13,000
(11) Manufacturing overhead applied to production $ 56,000
(12) Cost of goods manufactured $192,000
(13) Cash sales $266,000
(14) Cost of goods sold $199,000
(15) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Retained Earnings
Beginning balances, January 1 =
(1) Raw materials purchased for cash
=
(2) Raw materials used in production (direct materials)
=
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(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs paid in cash
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
(14) Cost of goods sold =
(15) Overapplied (underapplied) overhead
=
Ending balances at January 31
b. Prepare a Balance Sheet for the company for January 31.
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6) Feuerborn Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on January 1 appears below:
Feuerborn Corporation
Balance Sheet
January 1
Assets:
Cash $ 12,000
Raw materials $ 9,000
Work in process 13,000
Finished goods 18,000 40,000
Property, plant, and equipment (net) 205,000
Total assets $257,000
Liabilities and Stockholders’ Equity:
Accounts payable $ 19,000
Retained earnings 238,000
Total liabilities and stockholders’ equity $257,000
Summaries of the transactions completed during January appear below:
(1) Raw materials purchased on account $ 60,000
(2) Raw materials used in production (direct materials) $ 49,000
(3) Raw materials used in production (indirect materials) $ 7,000
(4) Direct labor paid in cash $ 70,000
(5) Indirect labor paid in cash $ 22,000
(6) Selling and administrative salaries paid in cash $ 32,000
(7) Factory utility costs (on account) $ 14,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 6,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 1,000
(10) Advertising expenses paid in cash $ 16,000
(11) Manufacturing overhead applied to production $ 48,000
(12) Cost of goods manufactured $158,000
(13) Cash sales $237,000
(14) Cost of goods sold $171,000
(15) Cash payments to creditors $ 78,000
(16) Overapplied (underapplied) overhead ?
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Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Accounts Payable Retained Earnings
Beginning balances, January 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
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(14) Cost of goods sold =
(15) Cash payments to creditors
(16) Overapplied (underapplied) overhead
=
Ending balances at January 31
b. Prepare a Balance Sheet for the company for January 31.
c. Prepare a Schedule of Cost of Goods Manufactured for the company for January.
d. Prepare a Schedule of Cost of Goods Sold for the company for January.
e. Prepare an Income Statement for the company for January.
7) Plocek Corporation uses a job-order costing system to assign manufacturing costs to jobs.
At the end of the month it closes out any overapplied or underapplied manufacturing overhead to
Cost of Goods Sold. Its balance sheet on July 1 appears below:
Plocek Corporation
Balance Sheet
July 1
Assets:
Cash $ 11,000
Raw materials $ 7,000
Work in process 12,000
Finished goods 18,000 37,000
Prepaid expenses 27,000
Property, plant, and equipment (net) 250,000
Total assets $325,000
Liabilities and Stockholders’ Equity:
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Accounts payable $ 19,000
Retained earnings 306,000
Total liabilities and stockholders’ equity $325,000
Summaries of the transactions completed during July appear below:
(1) Raw materials purchased on account $ 71,000
(2) Raw materials used in production (direct materials) $ 56,000
(3) Raw materials used in production (indirect materials) $ 11,000
(4) Direct labor paid in cash $ 90,000
(5) Indirect labor paid in cash $ 23,000
(6) Selling and administrative salaries paid in cash $ 30,000
(7) Factory utility costs (on account) $ 12,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 6,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 2,000
(10)Advertising expenses paid in cash $ 14,000
(11) Prepaid insurance expired–production $ 7,200
(12) Prepaid insurance expired–selling and administration $ 1,800
(13) Manufacturing overhead applied to production $ 58,000
(14) Cost of goods manufactured $197,000
(15) Cash sales $269,000
(16) Cost of goods sold $205,000
(17) Cash payments to creditors $ 87,000
(18) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Prepaid Expenses Property, plant, and
equipment (net) = Accounts Payable Retained Earnings
Beginning balances, July 1
=
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
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(4) Direct labor paid in cash
=
(5) Indirect labor paid in cash
=
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Prepaid insurance expired–production
(13) Prepaid insurance expired–selling and administration
(14) Cost of goods manufactured
=
(15) Cash sales =
(16) Cost of goods sold =
(17) Cash payments to creditors
(18) Overapplied (underapplied) overhead
=
Ending balances at July 31
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b.Prepare a Balance Sheet for the company for July 31.
c. Prepare a Schedule of Cost of Goods Manufactured for the company for July.
d. Prepare a Schedule of Cost of Goods Sold for the company for July.
e. Prepare an Income Statement for the company for July.
8) Tiehen Corporation uses a job-order costing system to assign manufacturing costs to jobs.
At the end of the month it closes out any overapplied or underapplied manufacturing overhead to
Cost of Goods Sold. Its balance sheet on April 1 appears below:
Tiehen Corporation
Balance Sheet
April 1
Assets:
Cash $ 10,000
Raw materials $ 4,000
Work in process 15,000
Finished goods 19,000 38,000
Property, plant, and equipment (net) 229,000
Total assets $277,000
Liabilities and Stockholders’ Equity:
Accounts payable $ 15,000
Retained earnings 262,000
Total liabilities and stockholders’ equity $277,000
Summaries of the transactions completed during April appear below:
(1) Raw materials purchased on account $ 66,000
(2) Raw materials used in production (direct materials) $ 50,000
(3) Raw materials used in production (indirect materials) $ 7,000
(4) Direct labor paid in cash $ 95,000
(5) Indirect labor paid in cash $ 25,000
(6) Selling and administrative salaries paid in cash $ 30,000
(7) Factory utility costs (on account) $ 12,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,000
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(9) Depreciation on Property, plant, and equipment–selling and
administration $ 2,000
(10) Advertising expenses paid in cash $ 15,000
(11) Manufacturing overhead applied to production $ 57,000
(12) Cost of goods manufactured $196,000
(13) Cash sales $269,000
(14) Cost of goods sold $205,000
(15) Cash payments to creditors $ 81,000
(16) Overapplied (underapplied) overhead ?
Required:
Complete the spreadsheet below. (Negative or Deductible amounts should be entered with a
minus sign.)
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Retained Earnings
Beginning balances, April 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
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(12) Cost of goods manufactured =
(13) Cash sales =
(14) Cost of goods sold =
(15)Cash payments to creditors =
(16) Overapplied (underapplied) overhead
=
Ending balances at April 30
9) Tiehen Corporation uses a job-order costing system to assign manufacturing costs to jobs.
At the end of the month it closes out any overapplied or underapplied manufacturing overhead to
Cost of Goods Sold. Its balance sheet on April 1 appears below:
Tiehen Corporation
Balance Sheet
April 1
Assets:
Cash $ 10,500
Raw materials $ 4,500
Work in process 15,500
Finished goods 19,500 39,500
Property, plant, and equipment (net) 229,500
Total assets $279,500
Liabilities and Stockholders’ Equity:
Accounts payable $ 15,250
Retained earnings 264,250
Total liabilities and stockholders’ equity $279,500
Summaries of the transactions completed during April appear below:
(1) Raw materials purchased on account $ 66,500
(2) Raw materials used in production (direct materials) $ 50,500
(3) Raw materials used in production (indirect materials) $ 7,250
(4) Direct labor paid in cash $ 95,500
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(5) Indirect labor paid in cash $ 25,500
(6) Selling and administrative salaries paid in cash $ 30,500
(7) Factory utility costs (on account) $ 12,500
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,500
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 2,250
(10) Advertising expenses paid in cash $ 15,500
(11) Manufacturing overhead applied to production $ 58,500
(12) Cost of goods manufactured $196,500
(13) Cash sales $279,000
(14) Cost of goods sold $205,500
(15) Cash payments to creditors $ 81,500
(16) Overapplied (underapplied) overhead ?
Required:
Complete the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Accounts Payable Retained Earnings
Beginning balances, April 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
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(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
(14) Cost of goods sold =
(15) Cash payments to creditors
(16) Overapplied (underapplied) overhead
=
Ending balances at April 30
10) Huberty Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on April 1 appears below:
Huberty Corporation
Balance Sheet
April 1
Assets:
Cash $ 14,000
Raw materials $ 8,000
Work in process 14,000
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Finished goods 16,000 38,000
Prepaid expenses 21,000
Property, plant, and equipment (net) 212,000
Total assets $285,000
Liabilities and Stockholders’ Equity:
Accounts payable $ 20,000
Retained earnings 265,000
Total liabilities and stockholders’ equity $285,000
Summaries of the transactions completed during April appear below:
(1) Raw materials purchased on account $ 93,000
(2) Raw materials used in production (direct materials) $ 80,000
(3) Raw materials used in production (indirect materials) $ 10,000
(4) Direct labor paid in cash $ 95,000
(5) Indirect labor paid in cash $ 22,000
(6) Selling and administrative salaries paid in cash $ 30,000
(7) Factory utility costs (on account) $ 11,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 2,000
(10) Advertising expenses paid in cash $ 15,000
(11) Prepaid insurance expired–production $ 5,600
(12) Prepaid insurance expired–selling and administration $ 1,400
(13) Manufacturing overhead applied to production $ 58,000
(14) Cost of goods manufactured $233,000
(15) Cash sales $314,000
(16) Cost of goods sold $241,000
(17) Cash payments to creditors $115,000
(18) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Accounts Payable Retained Earnings
Beginning balances, April 1 =
(1) Raw materials purchased on account
=
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(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Prepaid insurance expired–production
=
(12) Prepaid insurance expired–selling and administration
=
(13) Manufacturing overhead applied to production
=
(14) Cost of goods manufactured =
(15) Cash sales =
(16) Cost of goods sold =
(17) Cash payments to creditors =
(18) Overapplied (underapplied) overhead
=
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Ending balances at April 30
b. Prepare a Balance Sheet for the company for April 30.
11) Montuori Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below:
Montuori Corporation
Balance Sheet
October 1
Assets:
Cash $ 13,000
Raw materials $ 4,000
Work in process 15,000
Finished goods 16,000 35,000
Prepaid expenses 30,000
Property, plant, and equipment (net) 235,000
Total assets $313,000
Liabilities and Stockholders’ Equity:
Accounts payable $ 18,000
Retained earnings 295,000
Total liabilities and stockholders’ equity $313,000
Summaries of the transactions completed during October appear below:
(1) Raw materials purchased on account $ 92,000
(2) Raw materials used in production (direct materials) $ 71,000
(3) Raw materials used in production (indirect materials) $ 14,000
(4) Direct labor paid in cash $ 82,000
(5) Indirect labor paid in cash $ 27,000
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(6) Selling and administrative salaries paid in cash $ 32,000
(7) Factory utility costs (on account) $ 13,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 6,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 3,000
(10) Advertising expenses paid in cash $ 15,000
(11) Prepaid insurance expired–production $ 8,000
(12) Prepaid insurance expired–selling and administration $ 2,000
(13) Manufacturing overhead applied to production $ 72,000
(14) Cost of goods manufactured $221,000
(15) Cash sales $299,000
(16) Cost of goods sold $232,000
(17) Cash payments to creditors $ 99,000
(18) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Accounts Payable Retained Earnings
Beginning balances, October 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
Version 1 26
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Prepaid insurance expired–production
=
(12) Prepaid insurance expired–selling and administration
=
(13) Manufacturing overhead applied to production
=
(14) Cost of goods manufactured =
(15) Cash sales =
(16) Cost of goods sold =
(17) Cash payments to creditors =
(18) Overapplied (underapplied) overhead
=
Ending balances at October 31
b. Prepare a Schedule of Cost of Goods Sold for the company for October.
c. Prepare an Income Statement for the company for October.
Version 1 27
12) Amunrud Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on January 1 appears below:
Amunrud Corporation
Balance Sheet
January 1
Assets:
Cash $ 12,000
Raw materials $ 7,000
Work in process 11,000
Finished goods 16,000 34,000
Prepaid expenses 24,000
Property, plant, and equipment (net) 211,000
Total assets $281,000
Liabilities and Stockholders’ Equity:
Accounts payable $ 14,000
Retained earnings 267,000
Total liabilities and stockholders’ equity $281,000
Summaries of the transactions completed during January appear below:
(1) Raw materials purchased on account $ 63,000
(2) Raw materials used in production (direct materials) $ 55,000
(3) Raw materials used in production (indirect materials) $ 9,000
(4) Direct labor paid in cash $ 97,000
(5) Indirect labor paid in cash $ 27,000
(6) Selling and administrative salaries paid in cash $ 31,000
(7) Factory utility costs (on account) $ 13,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 7,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 3,000
(10) Advertising expenses paid in cash $ 15,000
(11) Prepaid insurance expired–production $ 6,400
(12) Prepaid insurance expired–selling and administration $ 1,600
(13) Manufacturing overhead applied to production $ 66,000
(14) Cost of goods manufactured $217,000
(15) Cash sales $289,000
(16) Cost of goods sold $228,000
(17) Cash payments to creditors $ 77,000
Version 1 28
(18) Overapplied (underapplied) overhead ?
Required:
Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Accounts Payable Retained Earnings
Beginning balances, January 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Prepaid insurance expired–production
=
(12) Prepaid insurance expired–selling and administration
=
Version 1 29
(13) Manufacturing overhead applied to production
=
(14) Cost of goods manufactured =
(15) Cash sales =
(16) Cost of goods sold =
(17) Cash payments to creditors =
(18) Overapplied (underapplied) overhead
=
Ending balances at January 31
13) Gilkison Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below:
Gilkison Corporation
Balance Sheet
October 1
Assets:
Cash $ 10,000
Raw materials $ 4,000
Work in process 13,000
Finished goods 17,000 34,000
Property, plant, and equipment (net) 212,000
Total assets $256,000
Liabilities and Stockholders’ Equity:
Accounts payable $ 13,000
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Retained earnings 243,000
Total liabilities and stockholders’ equity $256,000
Summaries of the transactions completed during October appear below:
(1) Raw materials purchased on account $ 93,000
(2) Raw materials used in production (direct materials) $ 75,000
(3) Raw materials used in production (indirect materials) $ 12,000
(4) Direct labor paid in cash $ 68,000
(5) Indirect labor paid in cash $ 27,000
(6) Selling and administrative salaries paid in cash $ 37,000
(7) Factory utility costs (on account) $ 13,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 8,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 2,000
(10) Advertising expenses paid in cash $ 12,000
(11) Manufacturing overhead applied to production $ 61,000
(12) Cost of goods manufactured $203,000
(13) Cash sales $287,000
(14) Cost of goods sold $215,000
(15) Cash payments to creditors $109,000
(16) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Accounts Payable Retained Earnings
Beginning balances, October 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
Version 1 31
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
(14) Cost of goods sold =
(15) Cash payments to creditors
(16) Overapplied (underapplied) overhead
=
Ending balances at October 31
b. Prepare a Schedule of Cost of Goods Sold for the company for October.
c. Prepare an Income Statement for the company for October.
Version 1 32
14) Gilkison Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below:
Gilkison Corporation
Balance Sheet
October 1
Assets:
Cash $ 10,850
Raw materials $ 2,350
Work in process 15,850
Finished goods 19,850 38,050
Property, plant, and equipment (net) 229,850
Total assets $278,750
Liabilities and Stockholders’ Equity:
Accounts payable $ 15,425
Retained earnings 263,325
Total liabilities and stockholders’ equity $278,750
Summaries of the transactions completed during October appear below:
(1) Raw materials purchased on account $ 66,850
(2) Raw materials used in production (direct materials) $ 50,850
(3) Raw materials used in production (indirect materials) $ 7,425
(4) Direct labor paid in cash $ 95,850
(5) Indirect labor paid in cash $ 25,850
(6) Selling and administrative salaries paid in cash $ 30,850
(7) Factory utility costs (on account) $ 12,850
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 10,850
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 2,425
(10) Advertising expenses paid in cash $ 15,850
(11) Manufacturing overhead applied to production $ 59,550
(12) Cost of goods manufactured $196,850
(13) Cash sales $286,000
(14) Cost of goods sold $205,850
(15) Cash payments to creditors $ 81,850
Version 1 33
(16) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Accounts Payable Retained Earnings
Beginning balances, October 1 =
(1) Raw materials purchased on account
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
(7) Factory utility costs (on account)
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
Version 1 34
(14) Cost of goods sold =
(15) Cash payments to creditors =
(16) Overapplied (underapplied) overhead
=
Ending balances at October 31
b. Prepare a Schedule of Cost of Goods Sold for the company for October.
c. Prepare an Income Statement for the company for October.
15) Wurzer Corporation uses a job-order costing system to assign manufacturing costs to
jobs. At the end of the month it closes out any overapplied or underapplied manufacturing
overhead to Cost of Goods Sold. Its balance sheet on January 1 appears below:
Wurzer Corporation
Balance Sheet
January 1
Assets:
Cash $ 14,000
Raw materials $ 6,000
Work in process 13,000
Finished goods 19,000 38,000
Property, plant, and equipment (net) 248,000
Total assets $300,000
Liabilities and Stockholders’ Equity:
Retained earnings $300,000
Total liabilities and stockholders’ equity $300,000
Version 1 35
Summaries of the transactions completed during January appear below:
(1) Raw materials purchased for cash $ 65,000
(2) Raw materials used in production (direct materials) $ 56,000
(3) Raw materials used in production (indirect materials) $ 12,000
(4) Direct labor paid in cash $ 96,000
(5) Indirect labor paid in cash $ 21,000
(6) Selling and administrative salaries paid in cash $ 33,000
(7) Factory utility costs paid in cash $ 14,000
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment $ 6,000
(9) Depreciation on Property, plant, and equipment–selling and
administration $ 1,000
(10) Advertising expenses paid in cash $ 13,000
(11) Manufacturing overhead applied to production $ 56,000
(12) Cost of goods manufactured $207,000
(13) Cash sales $278,000
(14) Cost of goods sold $217,000
(15) Overapplied (underapplied) overhead ?
Required:
a. Completely fill in the spreadsheet below.
Transactions Cash Raw Materials Work in Process Finished Goods
Manufacturing Overhead Property, plant, and equipment (net) =
Retained Earnings
Beginning balances, January 1 =
(1) Raw materials purchased for cash
=
(2) Raw materials used in production (direct materials)
=
(3) Raw materials used in production (indirect materials)
=
(4) Direct labor paid in cash =
(5) Indirect labor paid in cash =
(6) Selling and administrative salaries paid in cash
=
Version 1 36
(7) Factory utility costs paid in cash
=
(8) Depreciation on Property, plant, and equipment–manufacturing
equipment =
(9) Depreciation on Property, plant, and equipment–selling and
administration =
(10) Advertising expenses paid in cash
=
(11) Manufacturing overhead applied to production
=
(12) Cost of goods manufactured =
(13) Cash sales =
(14) Cost of goods sold =
(15) Overapplied (underapplied) overhead
=
Ending balances at January 31
b. Prepare a Balance Sheet for the company for January 31.
c. Prepare a Schedule of Cost of Goods Manufactured for the company for January.
d. Prepare a Schedule of Cost of Goods Sold for the company for January.
e. Prepare an Income Statement for the company for January.
16) In the Excel, or spreadsheet, approach to recording financial transactions, raw material
purchases on account are recorded as increases in the Raw Materials inventory column and
decreases in the Accounts Payable column.
⊚ true
⊚ false
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17) In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to
creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings
column.
⊚ true
⊚ false
18) In the Excel, or spreadsheet, approach to recording financial transactions, expired
insurance coverage on factory equipment is recorded as a decrease in the Prepaid Insurance
column and as a decrease in the Retained Earnings column.
⊚ true
⊚ false
19) In the Excel, or spreadsheet, approach to recording financial transactions, an advertising
expense paid in cash is recorded as a decrease in the Cash column and as a decrease in the
Retained Earnings column.
⊚ true
⊚ false
20) In the Excel, or spreadsheet, approach to recording financial transactions, direct labor
paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in
Process column.
⊚ true
⊚ false
21) In the Excel, or spreadsheet, approach to recording financial transactions, indirect labor
paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in
Process column.
Version 1 38
⊚ true
⊚ false
22) In the Excel, or spreadsheet, approach to recording financial transactions, manufacturing
overhead applied is recorded as an increase in the Work in Process column and as a decrease in
the Manufacturing Overhead column.
⊚ true
⊚ false
23) In the Excel, or spreadsheet, approach to recording financial transactions, the cost of
goods sold is recorded as a decrease in the Finished Goods column and as a decrease in the
Retained Earnings column.
⊚ true
⊚ false
24) In the Excel, or spreadsheet, approach to recording financial transactions, any
transactions involving sales or expenses will be recorded in the Net Income column of the
balance sheet.
⊚ true
⊚ false
25) In the Excel, or spreadsheet, approach to recording financial transactions, if
manufacturing overhead is underapplied by X dollars, the Manufacturing Overhead account is
closed out by deducting X dollars in the Manufacturing Overhead column and deducting X
dollars in the Retained Earnings column.
⊚ true
⊚ false
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26) In the Excel, or spreadsheet, approach to recording financial transactions, factory
depreciation is recorded as a decrease in the Property, Plant, and Equipment column and as a
decrease in the Retained Earnings column.
⊚ true
⊚ false
27) In the Excel, or spreadsheet, approach to recording financial transactions, work in process
that has been completed is recorded as a decrease in the Work in Process column and as an
increase in the Cost of Goods Sold column.
⊚ true
⊚ false
28) In the Excel, or spreadsheet, approach to recording financial transactions, the revenues
and expenses on the income statement can be determined by summing each column.
⊚ true
⊚ false
29) In the Excel, or spreadsheet, approach to recording financial transactions, the
Manufacturing Overhead account is used to record two things—all actual overhead expenses and
the amount of manufacturing overhead applied to production using the predetermined overhead
rate.
⊚ true
⊚ false
30) In the Excel, or spreadsheet, approach to recording financial transactions, factory utility
costs paid in cash are recorded as a decrease in the Cash column and as an increase in the
Manufacturing Overhead column.
⊚ true
⊚ false
Version 1 40
31) The equation “Ending balance in retained earnings = Beginning balance in retained
earnings + Net operating income – Dividends” highlights the connection between the balance
sheet and income statement and recognizes the fact that net operating income is essentially
embedded within retained earnings on the balance sheet.
⊚ true
⊚ false
Version 1 41
Answer Key
Test name: chapter 3A