Appendix 3A
Job-Order Costing: A Microsoft Excel-Based Approach
Exercise 3A-1 (20 minutes)
The transactions are recorded as follows:
Transaction
Cash
Raw
Materials
Work
in
Process
Finished
Goods
Manufacturing
Overhead
Retained
Earnings
a.
$(56,000)
$56,000
=
b.
$(40,000)
$40,000
=
$35,000
=
d.
=
$(90,000)
=
=
g.
$(18,000)
=
Exercise 3A-2 (20 minutes)
The transactions are recorded as follows:
Transaction
Work
in
Process
Prepaid
Expenses
PP&E
(net)
Accounts
Payable
Retained
Earnings
b.
=
$1,875
=
d.
$115,000
=
e.
=
$5,125
Exercise 3A-3 (20 minutes)
The transactions are recorded as follows:
Retained Earnings
Transaction
Yes
No
a.
√
b.
√
c.
$(45,000)
d.
$(21,000)
√
g.
√
√
√
√
Problem 3A–4 (45 minutes)
The transactions are recorded as shown below. The ending balance sheet balances are calculated in row
20 of the spreadsheet.
2. Since Morrison Company does not pay any dividends, its net operating income for the month of Janu-
ary equals the change in the balance of its Retained Earnings account ($255,800 ‒ $247,000 =
$8,800).
Problem 3A-5 (60 minutes)
1. The transactions are recorded as shown below. The ending balance sheet balances are calculated
in row 22 of the spreadsheet.
Problem 3A-5 (continued)
2. The schedule of cost of goods manufactured is prepared as shown be-
low.
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:
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.
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:
Beginning work in process ………………….
$ 14,000
Total manufacturing costs: …………………
Direct materials ………………………………
$67,000
Direct labor ……………………………………
102,000
101,000
270,000
Total costs to account for …………………..
284,000
Deduct: Ending work in process …………..
Cost of goods manufactured ……………….
The formula for computing the unadjusted cost of goods sold that is in-
cluded in the spreadsheet for requirement 1 is as follows:
Beginning finished goods ……………………
$ 22,000
Cost of goods manufactured ……………….
279,000
Cost of goods available for sale ……………
301,000
Deduct: Ending finished goods …………….
Unadjusted cost of goods sold …………….
2. The schedule of the cost of goods manufactured is as follows:
Problem 3A-6 (continued)
3. The schedule of cost of goods sold is as follows:
4. The income statement is as follows: