Step 5

Post the journal entries that you recorded on the "General Journal" tab to the "T-accounts" tab. This is the company's first month of business, so there will not be any beginning balances. Compute the balance for each T-account after all of the entries have been posted.

Step 6

Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold on the "Schedule of COGM and COGS" tab for Job #1 and Job #2 that were worked on during the month by the company. Make sure to follow the format noted in your book (pg. 87). (Hint: This is the company's first month of operations and therefore the beginning balances will be zero.)

Step 7

Prepare an Income Statement for the month using the Traditional Format on the "Income Statement" tab.

Step 8

Answer the additional questions below

Check Figure: Cost of Goods Manufactured= $7,120, Net operating income=$10,130

What is the ending balance for raw materials?

What is the ending balance for work in process?

What is the ending balance for finished goods?

What is the actual manufacturing overhead cost incurred during December before adjustment?

What is the total applied manufacturing overhead cost during December before adjustment?

What is the unadjusted cost of goods sold?

Was the manufacturing overhead for the month of December overapplied/underapplied ?

What is the amount of Manufacturing overhead overapplied/underapplied?

What is the adjusted cost of goods sold?

What is gross margin?

What is the total prime cost for Job#1?

What is the total conversion cost for job #1?

What is the total product cost for job#1?

What was the period cost incurred for the month of December?

What is the total variable cost incurred for Job #1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?

What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?

What would be the actual (not applied) total fixed manufacturing overhead cost incurred for the company for the month if the order in Job #1 is for five tables instead of one table assuming this cost is with in the relevant range?