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 $233,570. (b) Requisitioned materials at a cost of $111,200, of which $16,700 was for general factory use. (c) Recorded factory labor of $225,200, of which $43,375 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $35, 400 22,800 50, 550 10,100 20,200 (e) Applied overhead at a rate equal to 131 percent of direct labor cost. (f) Completed jobs costing $263,550. (9) Sold jobs costing $323,970. (h) Recorded sales revenue of $501,000. 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.) 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.)

please help solve numbers

Answer 1

Work in Process Inventory				Manufacturing Overhead
Beg.Bal.	$18,600			Beg.Bal.	$0
b	94,500	$263,550	f	b	16,700	$238,191	e
c	181,825			c	43,375
e (181,825*131%)	238,191			d	22,800
				d	10,100
End.Bal.		$269,566		d	20,200
				End.Bal.	$125,016

Under or Over applied overhead = Applied overhead - Actual overhead

Under or Over applied overhead = $238,191 - 113,175

Over applied overhead = $125,016

If balance in manufacturing overhead is closed directly to Cost of goods sold it will decrease.

LAMONDA CORP. Cost of Goods Manufactured Report For The Month of April
Beginning raw material inventory	$29,900
Raw material purchases	233,570
Less: Indirect materials	(16,700)
Less: Ending raw materials inventory	(152,270)
Direct material used	94,500
Direct labor	181,825
Manufacturing overhead applied	238,191
Total manufacturing cost	514,516
Beginning work in process inventory	18,600
Less: Ending work in process	(269,566)
Cost of goods manufactured	$263,550

LAMONDA CORP. Income Statement For The Month of April
Sales revenue		$501,000
Cost of goods sold
Beginning finished goods inventory	$124,300
Cost of goods manufactured	263,550
Less: Ending finished goods inventory	(63,880)
Unadjusted cost of goods sold	323,970
Less: Overapplied manufacturing overhead	(125,016)
Adjusted cost of goods sold		$198,954
Gross profit		302,046
Selling and administrative expenses		(85,950)
Net income (loss) from operations		$216,096