Use T-accounts to track the flow of costs through a job-order costing system using the company data provided.

Note: This company applies overhead at a rate of 80% of Direct Labor Costs (Applied OH = 0.80 x Direct Labor Dollars)

Given the following data:

Purchases:		Account Balances	Beginning	Ending
Raw Materials	78,000	Raw Materials	60,000	50,000
Manufacturing Supplies	9,000	Manufacturing Supplies	6,000	5,000
Office Supplies	2,000	Office Supplies	4,000	1,000
Sales	800,000	Work in Process	65,000	47,000
Administrative Salaries	16,000	Finished Goods	36,000	35,000
Direct labor	95,000
Production employees fringe benefits	8,000
Sales Commissions	80,000
Production supervisors salaries	17,000
Plant depreciation	11,000
Office depreciation	12,000
Plant maintenance	9,000
Plant Utilities	18,000
Office utilities	7,000
Office Maintenance	5,000
Production Equipment Rent	6,000
Office Equipment Rent	4,000

Calculate the following:

Cost of Goods Manufactured ___________________________________

Cost of Goods Sold ___________________________________________

Applied Overhead ____________________________________________

Amount of Under or Over Applied Overhead ______________________

Prepare an Income Statement in Excel using the template given below. Make sure to show all your work including the flow of costs through specific inventory accounts to arrive at Cost of Goods Sold.

Sales
Less: Cost of Goods Sold (COGS)
Gross Profit
Less: Selling, Administrative and General Expenses
1.
2.
3.
4.
5.
6.
7.
Total SGA Expenses (subtotal)
Net Income