© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
50 Managerial Accounting, 16th Edition
Problem 3A-4 (45 minutes)
2. Since Morrison Company does not pay any dividends, its net operating income for the month of Janu-
© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
Solutions Manual, Appendix 3A 51
Problem 3A-5 (60 minutes)
1. The transactions are recorded as shown below. The ending balance sheet balances are calculated
© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
52 Managerial Accounting, 16th Edition
Problem 3A-5 (continued)
2. The schedule of cost of goods manufactured is prepared as shown be-
low.
© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
Solutions Manual, Appendix 3A 53
Problem 3A-5 (continued)
3. The schedule of cost of goods sold is prepared as shown below:
4. The income statement is prepared as shown below:
© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
54 Managerial Accounting, 16th Edition
Problem 3A-6 (60 minutes)
1. The transactions are recorded as shown below. The ending balance sheet balances are calculated
in row 20 of the spreadsheet.
© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
Solutions Manual, Appendix 3A 55
Problem 3A-6 (continued)
The formula for computing the cost of goods manufactured that is included
in the spreadsheet for requirement 1 is as follows:
Be
g
innin
g
work in process …………………. $ 14,000
T
otal manufacturin
g
costs: …………………
Direct materials …………………………….. $67,000
T
The formula for computing the unadjusted cost of goods sold that is in-
cluded in the spreadsheet for requirement 1 is as follows:
Be
g
innin
g
finished
g
oods …………………… $ 22,000
g
© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
56 Managerial Accounting, 16th Edition
Problem 3A-6 (continued)
2. The schedule of the cost of goods manufactured is as follows:
© The McGraw-Hill Companies, Inc., 2018. All rights reserved.
Solutions Manual, Appendix 3A 57
Problem 3A-6 (continued)
3. The schedule of cost of goods sold is as follows:
4. The income statement is as follows: