TB Problem Qu. 3A-18 (Algo) Gilkison Corporation uses a job-order costing...

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:

Gilkison Corporation
Balance Sheet
October 1
Assets:
Cash		$ 10,450
Raw materials	$ 3,150
Work in process	15,450
Finished goods	19,450	38,050
Property, plant, and equipment (net)		229,450
Total assets		$277,950
Liabilities and Stockholders Equity:
Accounts payable		$ 15,225
Retained earnings		262,725
Total liabilities and stockholders equity		$277,950

Summaries of the transactions completed during October appear below:

(1) Raw materials purchased on account	$ 66,450
(2) Raw materials used in production (direct materials)	$ 50,450
(3) Raw materials used in production (indirect materials)	$ 7,225
(4) Direct labor paid in cash	$ 95,450
(5) Indirect labor paid in cash	$ 25,450
(6) Selling and administrative salaries paid in cash	$ 30,450
(7) Factory utility costs (on account)	$ 12,450
(8) Depreciation on PP&Emanufacturing equipment	$ 10,450
(9) Depreciation on PP&Eselling and administration	$ 2,225
(10) Advertising expenses paid in cash	$ 15,450
(11) Manufacturing overhead applied to production	$ 58,350
(12) Cost of goods manufactured	$196,450
(13) Cash sales	$278,000
(14) Cost of goods sold	$205,450
(15) Cash payments to creditors	$ 81,450
(16) Overapplied (underapplied) overhead	?

Required:

a. Complete the spreadsheet below.

b. Prepare a Schedule of Cost of Goods Sold for the company for October.

c. Prepare an Income Statement for the company for October.