Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please use the following information to create the Journal entries for the monthly activities. pleaee show the formulas used if possible!! Brooks Corporation uses a

please use the following information to create the Journal entries for the monthly activities. pleaee show the formulas used if possible!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs. The company closes its underapplled on overapplied overhead to cost of goods sold. Its balance sheet on March 1 is as follows: $ 88,000 Brooks Corporation Balance Shent 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 $27,500 17,600 30,800 75,900 2,000 226,000 $ 391,90 $ 21,500 370.400 $391 900 a. Purchased raw materials for cash. $79.000. b. Raw materials used in production, $84.000 ($71.200 was direct materials and $12,800 was indirect materials) c. Pald $200,950 of salaries and wages in cash ($102.750 was direct labor. $42,600 was indirect labor, and $55,600 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs paid in cash to support production, $51,800. e. Depreciation recorded on property, plant and equipment. $45.200 (85% related to manufacturing equipment and 15% related to assets that support seling and administration), Vatlous selling expenses incurred on account. $39.800. 9. Prepaid insurance expired during the month. $500 (60% related to production, and 40% related to selling and administration). h. Manufacturing overhead applied to production, $142,825. Cost of goods manufactured, $_2_ (Hint: The Work in Process balance on March 3151 is $5,400.) 1. Cash sales to customers, $556,000. k Cost of goods sold (unadjusted). $. ? (Hint: The Finished Goods balance at March 315 is $6,250.) 1.Cash payments to creditors, $42.600. m. Underapplied or overapplied overhead $_2 Calculate the ending balances that would be reported on the company's balance sheet at March 31 (Hint: Be sure to calculate the underapplied or overapplied overhead and then a sheet Amounts to be deducted should be indicated by a mission) Transactions Beginning balances @31 a) Raw material purchases (b) Raw materials used in production c) Sales and wages Manous manufacturing overhead costs (e) Deprecaution Various sing expenses (a) Expiration of prepaid insurance C) Marutacturing overhead applied 10 Cost of good manufactured Sales (C) Cost of goods sold 0 Payments to creditors minder applied overhead Ending balances 331 Brooks Corporation Transaction Analysis For the Month Ended March 31 Work in Cash Raw Materials Finished Prepaid Manufacturing Accounts PPRE ineti Retained Process Goods Overhead Expenses Payable Earning 58,000 $ 27 500 5 17.600 $ 30,800 5 0$ 2000 5 226 000 $ 21.500 5 370.000 (79.000) 79.000 (34000) 71 200 12 800 200.950) 102.750 42,000 455.0 51 800) 51.000 38 420 (45.2001 07 39.000 00,000) 300 (500) 1200) 142 8251 (142 825) (328 075) 328975 556,000 550 000 (353525) (353,5250 142.600) (42000) (3005) (30059 5.400 22 500 5 200 650 s os 0.250 s 100 000 167400 1.500 5 15/005 $ Required 2 > $ 17,600 Schedule of Cost of Goods manufactured Add: Beginning Work in Process Inventory Direct Material Raw Material, Beginning Inventory $ Add: Purchases S Total Raw Material Available $ Deduct : Raw Material in inventory, ending S Raw Material Used $ Less : Indirect Material Used $ Direct Materia Used Direct Labor Manufacturing Overhead Total Manufacturing Costs Total Work in Process Inventory Deduct: Ending Work in Process Inventory Cost of Goods Manufactured 27,500 79,000 106,500 22,500 84,000 12,800 $ $ $ 71,2001 102,750 142,8251 $ $ $ $ 316,775 334,375 5,400 328,975 Required 1 Required 2 Required 3 Required 4 Prepare Brooks Corporation's schedule of cost of goods sold for the mo Brooks Corporation Schedule of Cost of Goods Sold $ 30.800 For the Month Ended March 31 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold $ 328,975 359,775 6,250 353,525 3,095 356,620 Prepare Brooks Corporation's income statement for the month ended March 31st Brooks Corporation Income Statement For the Month Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income 556,000 356,620 199,380 102,380 97,000 $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

15th Edition

978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960

More Books

Students also viewed these Accounting questions

Question

Who holds the power in recruitment and selection?

Answered: 1 week ago

Question

Explain the effectiveness of various selection methods

Answered: 1 week ago

Question

Explain the nature of attraction in recruitment

Answered: 1 week ago