Venzke 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 January 1 appears below: Venzke Corporation Balance Sheet January 1 Assets: Cash Raw materials $13,000 $8,000 Work in process 14,000 Finished goods 18,000 40,000 Property, plant, and equipment (net) 243,000 Total assets $296,000 Liabilities and Stockholders' Equity: Accounts payable Retained earnings Total liabilities and stockholders' equity $10,000 286,000 $296,000 Summaries of the transactions completed during January appear below; (1) Raw materials purchased on account $61,000 (2) Raw materials used in production (direct materials) $49,000 (3) (4) Raw materials used in production (indirect materials) Direct labor paid in cash $7,000 $60,000 (5) Indirect labor paid in cash $23,000 (6) Selling and administrative salaries paid in cash $35,000 (7) Factory utility costs (on account) $11,000 (8) Depreciation on PP&E--manufacturing equipment $6,000 (9) Depreciation on PP&E-selling and administration $2,000 (10) Advertising expenses paid in cash $12,000 (11) Manufacturing overbead applied to production $44,000 (12) Cost of goods manufactured $145,000 (13) Cash sales $224,000 (14) Cost of goods sold $153,000 (15) Cash payments to creditors $70,000 (16) Overapplied (underapplied) overhead 2 Required: a. Completely fill in the spreadsheet found on Blackboard u b. Prepare a Balance Sheet for the company for January 31. Transactions Beginning balances, January 1 Raw materials purchased on 1 account Raw materials used in 2 3 production (direct materials) Raw materials used in production (indirect materials) 4 Direct labor paid in cash 5 Indirect labor paid in cash 6 Selling and administrative salaries paid in cash 7 Factory utility costs (on account) Depreciation on PP&E-- 8 manufacturing equipment Depreciation on PP&E-selling 9 and administration 10 Advertising expenses paid in 11 cash Manufacturing overhead applied to production 12 Cost of goods manufactured 13 Cash sales 14 Cost of goods sold 15 Cash payments to creditors 16 Overapplied (underapplied) overhead Ending balances at January 31 Cash Raw Work in Finished Manufacturing PP&E Materials Process Goods Overhead Accounts Retained (net) Payable Eamings