Problem 3A-6 (Algo) Transaction Analysis [LO3-5] Brooks Corporation uses job-order costing 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 Raw materials Work in process $ 96,000 $ 21,900 14,300 Finished goods Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 22,800 During March the company completed the following transactions: a. Purchased raw materials for cash, $79,400. 59,000 2,320 190,000 $ 347,320 $ 20,900 326,420 $ 347,320 b. Raw materials used in production, $89,100 ($72,600 was direct materials and $16,500 was Indirect materials). c. Paid $229,400 of salaries and wages in cash ($147,000 was direct labor, $27,400 was Indirect labor, and $55,000 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs paid in cash to support production, $47,200. e. Depreciation on property, plant, and equipment, $38,000 (85% related to manufacturing equipment and 15% related to assets that support selling and administration). f. Various selling expenses incurred on account, $34,600. g. Prepaid Insurance expired, $580 (60% related to production, and 40% related to selling and administration). h. Manufacturing overhead applied to production, $120,533. 1. Cost of goods manufactured, $__? (Hint: The Work In Process balance on March 31st is $5,100.) J. Cash sales to customers, $584,000. k. Cost of goods sold (unadjusted), $? (Hint: The Finished Goods balance at March 31st is $6,600.) I. Cash payments to creditors, $51,400. m. Underapplied or overapplied overhead $___?_ Required: 1. Calculate the ending balances reported on the company's balance sheet. (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. 3. Prepare Brooks Corporation's schedule of cost of goods sold. 4. Prepare Brooks Corporation's Income statement. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the ending balances reported on the company's balance sheet. (Hint: Be sure to calculate the underapplied or overapplied overhead and then account for its affect on the balance sheet.) Note: Amounts to be deducted should be indicated by a minus sign. Transactions Beginning balances at 3/1 (a) Raw material purchases (b) Raw materials used in production (c) Salaries and wages (d) Various manufacturing overhead costs (e) Depreciation (f) Various selling expenses (g) Expiration of prepaid insurance (h) Manufacturing overhead applied (i) Cost of good manufactured Sales (k) Cost of goods sold (1) Payments to creditors (m) Brooks Corporation Transaction Analysis For the Month Ended March 31 Cash Raw Materials Work in Process Finished Goods Manufacturing Overhead Prepaid Expenses PPE (net) $ 96,000 $ 21,900 $ 14,300 $ 22,800 S 0 $ 2,320 $ 190,000 = Ending balances at 3/31 < Required 1 Required 2 > = = Accounts Payable Retained Earnings $ 20,900 $ 326,420 Required 1 Required 2 Required 3 Required 4 Prepare Brooks Corporation's schedule of cost of goods manufactured. Direct materials: Brooks Corporation Schedule of Cost of Goods Manufactured For the Month Ended March 31 Direct labor Manufacturing overhead applied to work in process Total manufacturing costs added to production Total manufacturing cost to account for Cost of goods manufactured < Required 1 Required 3 > 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. Brooks Corporation Schedule of Cost of Goods Sold For the Month Ended March 31 < Required 2 Required 4 > 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. Brooks Corporation Income Statement For the Month Ended March 31 Required 3 Required 4 >