Homework answers / question archive / Problem 3A-6 Transaction Analysis (LO3-5) Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs

Problem 3A-6 Transaction Analysis (LO3-5) Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs

Accounting

Share With

Problem 3A-6 Transaction Analysis (LO3-5) Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs. The company closes its underapplied or overapplied overhead to cost of goods sold. Its balance sheet on March 1 is as follows: Brooks Corporation Balance Sheet March 1 Assets Cash $ 94,000 Raw materials $23,400 Work in process 15,200 Finished goods 24,100 62,700 Prepaid expenses 2,240 Property, plant, and equipment (net) 220,000 Total assets $ 378,940 Liabilities and Stockholders' Equity Accounts payable $ 21,200 Retained earnings 357,740 Total liabilities and stockholders' equity $ 378,940 During March the company completed the following transactions: a. Purchased raw materials for cash, $75,200. b. Raw materials used in production, $93,200 ($77,200 was direct materials and $16,000 was indirect materials). C. Paid $196,750 of salaries and wages in cash ($117,750 was direct labor, $23,600 was indirect labor, and $55,400 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs paid in cash to support production, $44.800. e. Depreciation recorded on property, plant, and equipment, $44,000 (85% related to manufacturing equipment and 15% related to assets that support selling and administration). f. Various selling expenses incurred on account, $41,400. 9. Prepaid insurance expired during the month $560 (60% related to production, and 40% related to selling and administration). h. Manufacturing overhead applied to production, $118,951. Cost of goods manufactured, $_2_(Hint: The Work in Process balance on March 31st is $5,100.) J. Cash sales to customers, $540,000 k. Cost of goods sold (unadjusted) $_2_. (Hint: The Finished Goods balance at March 31st is $8,200.) 1. Cash payments to creditors, $47,200. m. Underapplied or overapplied overhead $_2_ Required: 1. Calculate the ending balances that would be reported on the company's balance sheet at March 3151 (Hint: Be sure to calculate the underapplied or overapplied overhead and then account for its affect on the balance sheet.) 2. Prepare Brooks Corporation's schedule of cost of goods manufactured for the month ended March 31st 3. Prepare Brooks Corporation's schedule of cost of goods sold for the month ended March 31st 4. Prepare Brooks Corporation's income statement for the month ended March 31st Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the ending balances that would be reported on the company's balance sheet at March 31st (Hint: Be sure to calculate the underapplied or overapplied overhead and then account for its affect on the balance sheet.) (Amounts to be deducted should be indicated by a minus sign.) Brooks Corporation Transaction Analysis For the Month Ended March 31 Work in Manufacturing Cash Raw Materials Prepaid Process Goods Overhead Expenses 94.000 $ 23,400 $ 15,200 $ 24,100 S os 2.240 Finished Accounts PP&E (net) Retained Payable Earnings 220,000 = S 21,200 S 357.740 S on - 1- Transactions Beginning balances @3/1 ka) Raw material purchases (b) Raw materials used in production 19 (c) Salaries and wages (a) Various manufacturing overhead costs ana (0) Depreciation ( Various selling expenses (9) Expiration of prepaid insurance (h) Manufacturing overhead applied 0 Cost of good manufactured 0 Sales (K) Cost of goods sold W Payments to creditors (m) Ending balances @ 3/31
Problem 3A-6 Transaction Analysis (LO3-5) Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs. The company closes its underapplied or overapplied overhead to cost of goods sold. Its balance sheet on March 1 is as follows: $ 94,000 Brooks Corporation Balance Sheet March 1 Assets Cash Raw materials Work in process Finished goods Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity $23,400 15, 200 24,100 62,700 2,240 220,000 $ 378,940 $ 21,200 357,740 $ 370,940 During March the company completed the following transactions: a. Purchased raw materials for cash, $75,200. b. Raw materials used in production, $93,200 ($77,200 was direct materials and $16,000 was indirect materials). C. Paid $196,750 of salaries and wages in cash ($117,750 was direct labor, $23,600 was indirect labor, and $55,400 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs paid in cash to support production, $44,800. e. Depreciation recorded on property, plant, and equipment, $44,000 (85% related to manufacturing equipment and 15% related to assets that support selling and administration). f. Various selling expenses incurred on account, $41,400. g. Prepaid insurance expired during the month, $560 (60% related to production, and 40% related to selling and administration). h. Manufacturing overhead applied to production, $118,951. 1. Cost of goods manufactured, $_?_ (Hint: The Work in Process balance on March 31st is $5,100.) J. Cash sales to customers, $540,000. k. Cost of goods sold (unadjusted), $_?_(Hint: The Finished Goods balance at March 31st is $8,200.) 1. Cash payments to creditors, $47,200. m. Underapplied or overapplied overhead $_?_ Required: 1. Calculate the ending balances that would be reported on the company's balance sheet at March 31st(Hint: Be sure to calculate the underapplied or overapplied overhead and then account for its affect on the balance sheet.) 2. Prepare Brooks Corporation's schedule of cost of goods manufactured for the month ended March 31st 3. Prepare Brooks Corporation's schedule of cost of goods sold for the month ended March 31st 4. Prepare Brooks Corporation's income statement for the month ended March 31st Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare Brooks Corporation's schedule of cost of goods manufactured for the month ended March 31st Brooks Corporation Schedule of Cost of Goods Manufactured For the Month Ended March 31 0 0 $ 0 Total manufacturing costs 0 0 Cost of goods manufactured $ 0
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare Brooks Corporation's schedule of cost of goods sold for the month ended March 31st Brooks Corporation Schedule of Cost of Goods Sold For the Month Ended March 31 0 0 $ 0
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare Brooks Corporation's income statement for the month ended March 31st Brooks Corporation Income Statement For the Month Ended March 31 0 $ 0