Gilkison Corporation Uses a Job-Order Costing System to Assign Manufacturing

question 246

Essay

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:
Summaries of the transactions completed during October appear below:
Required:a. Completely fill in 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.

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Definitions:

Autonomous Spending

Spending that does not depend on the current level of national income or output, such as investments, government spending, and exports.

Aggregate Expenditure Line

A graphical representation showing the total planned spending on goods and services at different levels of national income.

Spending Multiplier

A factor by which a change in spending translates into a greater change in income and output throughout the economy.

Price Level

The calculated average price across the broad spectrum of goods and services in an economy.