Deck 19: Job-Order Costing: a Microsoft Excel-Based Approach

Question 1

In the Excel,or spreadsheet,approach to recording financial transactions,if manufacturing overhead is underapplied by X dollars,the Manufacturing Overhead account is closed out by deducting X dollars in the Manufacturing Overhead column and deducting X dollars in the Retained Earnings column.

Answer 1

True

Question 2

In the Excel,or spreadsheet,approach to recording financial transactions,the revenues and expenses on the income statement can be determined by summing each column.

Answer 2

False

Question 3

Sandra 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:
Summaries of the transactions completed during January appear below:
Required:
Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.

Answer 3

Note: Entry (15),overapplied (underapplied)is a plug figure to make the ending balance in Manufacturing Overhead zero.

Question 4

In the Excel,or spreadsheet,approach to recording financial transactions,raw material purchases on account are recorded as increases in the Raw Materials inventory column and decreases in the Accounts Payable column.

Question 5

In the Excel,or spreadsheet,approach to recording financial transactions,factory depreciation is recorded as a decrease in the Property,Plant,and Equipment column and as a decrease in the Retained Earnings column.

Question 6

Wessendorf 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:
Summaries of the transactions completed during January appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Balance Sheet for the company for January 31.

Question 7

In the Excel,or spreadsheet,approach to recording financial transactions,expired insurance coverage on factory equipment is recorded as a decrease in the Prepaid Insurance column and as a decrease in the Retained Earnings column.

Question 8

In the Excel,or spreadsheet,approach to recording financial transactions,an advertising expense paid in cash is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.

Question 9

In the Excel,or spreadsheet,approach to recording financial transactions,the cost of goods sold is recorded as a decrease in the Finished Goods column and as a decrease in the Retained Earnings column.

Question 10

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:
Summaries of the transactions completed during July appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Schedule of Cost of Goods Sold for the company for July.
c.Prepare an Income Statement for the company for July.

Question 11

The equation "Ending balance in retained earnings = Beginning balance in retained earnings + Net operating income - Dividends" highlights the connection between the balance sheet and income statement and recognizes the fact that net operating income is essentially embedded within retained earnings on the balance sheet.

Question 12

In the Excel,or spreadsheet,approach to recording financial transactions,the Manufacturing Overhead account is used to record two things-all actual overhead expenses and the amount of manufacturing overhead applied to production using the predetermined overhead rate.

Question 13

In the Excel,or spreadsheet,approach to recording financial transactions,direct labor paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in Process column.

Question 14

In the Excel,or spreadsheet,approach to recording financial transactions,manufacturing overhead applied is recorded as an increase in the Work in Process column and as a decrease in the Manufacturing Overhead column.

Question 15

In the Excel,or spreadsheet,approach to recording financial transactions,cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.

Question 16

In the Excel,or spreadsheet,approach to recording financial transactions,factory utility costs paid in cash are recorded as a decrease in the Cash column and as an increase in the Manufacturing Overhead column.

Question 17

Venzke 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:
Summaries of the transactions completed during January appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Balance Sheet for the company for January 31.

Question 18

In the Excel,or spreadsheet,approach to recording financial transactions,any transactions involving sales or expenses will be recorded in the Net Income column of the balance sheet.

Question 19

In the Excel,or spreadsheet,approach to recording financial transactions,indirect labor paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in Process column.

Question 20

In the Excel,or spreadsheet,approach to recording financial transactions,work in process that has been completed is recorded as a decrease in the Work in Process column and as an increase in the Cost of Goods Sold column.

Question 21

Plocek 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:
Summaries of the transactions completed during July appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Balance Sheet for the company for July 31.
c.Prepare a Schedule of Cost of Goods Manufactured for the company for July.
d.Prepare a Schedule of Cost of Goods Sold for the company for July.
e.Prepare an Income Statement for the company for July.

Question 22

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:
Summaries of the transactions completed during October appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Schedule of Cost of Goods Sold for the company for October.
c.Prepare an Income Statement for the company for October.

Question 23

Gilkison 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:
Summaries of the transactions completed during October appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Schedule of Cost of Goods Sold for the company for October.
c.Prepare an Income Statement for the company for October.

Question 24

Huberty 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 April 1 appears below:
Summaries of the transactions completed during April appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Balance Sheet for the company for April 30.

Question 25

Feuerborn 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:
Summaries of the transactions completed during January appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Balance Sheet for the company for January 31.
c.Prepare a Schedule of Cost of Goods Manufactured for the company for January.
d.Prepare a Schedule of Cost of Goods Sold for the company for January.
e.Prepare an Income Statement for the company for January.

Question 26

Wurzer 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:
Summaries of the transactions completed during January appear below:
Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.
b.Prepare a Balance Sheet for the company for January 31.
c.Prepare a Schedule of Cost of Goods Manufactured for the company for January.
d.Prepare a Schedule of Cost of Goods Sold for the company for January.
e.Prepare an Income Statement for the company for January.

Question 27

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:
Summaries of the transactions completed during January appear below:
Required:
Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.

Question 28

Tiehen 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 April 1 appears below:
Summaries of the transactions completed during April appear below:
Required:
Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns,the spreadsheet has been divided into two parts that should be side by side.