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Gilkison Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it c...

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 $ 10,700
Raw materials $ 4,700
Work in process 15,700
Finished goods 19,700 40,100
Property, plant, and equipment (net) 229,700
Total assets $ 280,500
Liabilities and Stockholders' Equity:
Accounts payable $ 15,350
Retained earnings 265,150
Total liabilities and stockholders' equity $ 280,500

Summaries of the transactions completed during October appear below:

(1) Raw materials purchased on account $ 66,700
(2) Raw materials used in production (direct materials) $ 50,700
(3) Raw materials used in production (indirect materials) $ 7,350
(4) Direct labor paid in cash $ 95,700
(5) Indirect labor paid in cash $ 25,700
(6) Selling and administrative salaries paid in cash $ 30,700
(7) Factory utility costs (on account) $ 12,700
(8) Depreciation on PP&E--manufacturing equipment $ 10,700
(9) Depreciation on PP&E--selling and administration $ 2,350
(10) Advertising expenses paid in cash $ 15,700
(11) Manufacturing overhead applied to production $ 59,100
(12) Cost of goods manufactured $ 196,700
(13) Cash sales $ 283,000
(14) Cost of goods sold $ 205,700
(15) Cash payments to creditors $ 81,700
(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.Complete this question by entering your answers in the table below. Required A Required B Required C Complete the spreadsheet

Complete this question by entering your answers in the table below. Required A Required B Required C Complete the spreadsheet below. (Negative or Deductible amounts should be entered with a minus sign.) Accounts Retained Payable Raw Work in Finished Manufacturing Overhead Transactions PP&E (net) Cash Materials Process Goods Eamings Beginning balances, October 1 (1) Raw materals purchased on account (2) Raw materials used in production (direct materials) (3) 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 uilily costs (on account) (8) Depreciation on PP&E-manufacturing equipment (9) Depreciation on PP&E-selling and administration (10 Advertising expenses paid in cash (11) 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 October 31 Roquired A Required B
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ReportAnswer #1
Cash Raw material Work In process Finished Goods Manufactiring overhead PP & E Accounts payable Retained Earnings
Beg Bal 10700 4700 15700 19700
-1 Raw materials purchased on account 66,700 66,700
-2 Raw materials used in production (direct materials) -50,700 50,700
-3 Raw materials used in production (indirect materials) -7,350 7,350
-4 Direct labor paid in cash -95,700 95,700
-5 Indirect labor paid in cash -25,700 25,700
-6 Selling and administrative salaries paid in cash -30,700 -30,700
-7 Factory utility costs (on account) 12,700 12700 12700
-8 Depreciation on PP&E--manufacturing equipment 10,700 -10,700
-9 Depreciation on PP&E--selling and administration -2350 -2350
-10 Advertising expenses paid in cash -15700 -15700
-11 Manufacturing overhead applied to production 59100 -59100
-12 Cost of goods manufactured -196,700 196,700
-13 Cash sales 283,000 283000
-14 Cost of goods sold -205,700 -205,700
-15 Cash payments to creditors -81,700 -81,700
-16 Overapplied (underapplied) overhead 2650
Total 56900 13350 24500 10700 0 -13050 -2300 28550
Schedule of Cost of Goods Sold for the company for October.
Beginning balance 19700
Add: Cost of goods manufactured 196,700
216400
Less: Ending balance 10700
Unadjusted Cost of good sold 205700
Less: Overapplied overhead -2650
Adjusted Cost of good sold 203050
Income Statement
Sales 283000
Less: Cost of good sold 203050
Gross profit 79950
Less: Seliing & administrative expenses
Selling and administrative salaries expenses 30,700
Depreciation on PP&E--selling and administration 2350
Advertising expenses paid in cash 15700 48,750
Net Income 31,200
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