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 |
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| (7) Factory utility costs (on account) | $ 13,000 |
|---|
| (8) Depreciation on PP&E—manufacturing equipment | $ 7,000 |
|---|
| (9) Depreciation on PP&E—selling and administration | $ 3,000 |
|---|
| (10) Advertising expenses paid in cash | $ 15,000 |
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| (11) Prepaid insurance expired—production | $ 6,400 |
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| (12) Prepaid insurance expired—selling and administration | $ 1,600 |
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| (13) Manufacturing overhead applied to production | $ 66,000 |
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| (14) Cost of goods manufactured | $217,000 |
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| (15) Cash sales | $289,000 |
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| (16) Cost of goods sold | $228,000 |
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| (17) Cash payments to creditors | $ 77,000 |
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| (18) Overapplied (underapplied) overhead | ? |
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Required:
Completely fill in the spreadsheet below.
| Transactions | Cash | Raw Materials | Work in Process | Finished Goods | Manufacturing Overhead | PP&E (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 PP&E—manufacturing equipment | | | | | | | = | | |
| (9) Depreciation on PP&E—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 January 31 | | | | | | | | | |
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