Question

Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as shown in the T-accounts below: The following transactions occurred during April (a) Purchased materials on account at a cost of $232,070 (b) Requisitioned materials at a cost of $110,900, of which $15,200 was for general factory use (c) Recorded factory labor of $224,500, of which $42,675 was indirect. (d) Incurred other costs Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $35,700 24,600 51,050 11,900 20,700 (e) Applied overhead at a rate equal to 127 percent of direct labor cost. (f) Completed jobs costing $263,450 (g) Sold jobs costing $324,670 (h) Recorded sales revenue of $503,000 Required: 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.) Raw Materials Inventory Work in Process Inventory Beg. Bal 28,200.00 Beg. Bal 19,200.00 End. Bal 28,200.00 End. Bal 19,200.00

1. and 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April.(Round your answers to 2 decimal places.)

3-a. Compute over- or underapplied manufacturing overhead. (Round your answer to 2 decimal places.)

3-b. If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will Cost of Goods Sold increase or decrease?

4. Prepare Lamonda’s cost of goods manufactured report for April. (Round your answers to 2 decimal places.)

5. Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Round your answers to 2 decimal places.)

Answer 1

	Raw Materials Inventory
Bal	28,200	110,900	b)
(a)	232,070
Bal.	149,370
	Work in process inventory
Bal	19,200	263,450	f)
(b)	95,700
(c )	181,825
(e )	230917.75
Bal	264,192.75
	Finished Goods inventory
Bal	123,200	324,670	(g)
(f)	263,450
Bal	61,980
	Manufacturing Overhead
Beg bal	0
(b)	15,200	230917.75	e)
( c)	42,675
(d)	24,600
(d)	11,900
(d)	20,700
End bal		115842.75
	Cost of goods sold
Beg bal	0
(g)	324,670
Bal.
	Sales Revenue
Beg.Bal		0
		503,000	(h)
end bal		503,000
	Selling and administrative expense
Beg bal	0
(d)	35,700
(d)	51,050
Bal.	86,750
3-a)
Manufacturing overhead				Overapplied		115,842.75
3-b)	Decrease
Cost of goods manufactured report
Beginning raw materials inventory						28,200
Add:Raw materials purchases						232,070
less:Indirect materials						15,200
less:Ending raw materials inventory						149,370
Direct materials used						95,700
Direct labor						181,825
Manufacturing overhead applied						230917.75
Total current manufacturing costs						508,442.75
Add:Beginning work in process inventory						19,200
less:Ending work in process inventory						264,192.75
Cost of goods manufactured.						263,450.00
Income Statement
Sales Revenue							503,000
Cost of good sold
Beginning finished goods inventory						123,200
Add cost of goods manufactured						263,450.00
less:Ending finished goods inventory						61,980
Unadjusted cost of goods sold						324,670.00
less:Overapplied manufacturing overhead						115,842.75
Adjusted cost of goods sold							208,827.25
Gross profit							294,172.75
Selling & administrative expense							86,750
Net income from operations							207,422.75