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jkim3464 jkim3464
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A year ago

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 process15,000
Finished goods16,00035,000
Prepaid expenses30,000
Property, plant, and equipment (net)235,000
Total assets$313,000
Liabilities and Stockholders’ Equity:
Accounts payable$ 18,000
Retained earnings295,000
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
(6) Selling and administrative salaries paid in cash$ 32,000
(7) Factory utility costs (on account)$ 13,000
(8) Depreciation on PP&E—manufacturing equipment$ 6,000
(9) Depreciation on PP&E—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.

TransactionsCashRaw MaterialsWork in ProcessFinished GoodsManufacturing OverheadPrepaid ExpensesPP&E (net)=Accounts PayableRetained 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 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 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.
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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DNA_HelicaseDNA_Helicase
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jkim3464 Author
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A year ago
Thanks for your help!!
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This helped my grade so much Perfect
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You make an excellent tutor!
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