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:
| (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 PP&E—manufacturing equipment | $ 10,000 |
|---|
| (9) Depreciation on PP&E—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 | PP&E (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 | | | | | | | = | |
| (8) Depreciation on PP&E—manufacturing equipment | | | | | | | = | |
| (9) Depreciation on PP&E—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.
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