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 $232,470. (b) Requisitioned materials at a cost of $111,900, of which $15,600 was for general factory use. (c) Recorded factory labor of $224,800, of which $42,175 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $34,800 24, 200 51,250 10,800 20,100 (e) Adplied overhead at a rate equal to 133 percent of direct labor cost. () Completed jobs costing $262,150. (g) Sold jobs costing $324,370. (h) Recorded sales revenue of $510,000. 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.) 3 of 3 < Prev Next MacBook Pro

Answer 1

1 & 2

Raw Materials Inventory					Work in Process Inventory
Beg Bal	$    28,800.00				Beg Bal	$     18,200.00
(a)	$ 232,470.00	$     111,900.00	(b)		(b)	$     96,300.00	$ 262,150.00	(f)
					(c)	$   182,625.00
					(e )	$   242,891.25
End Bal	$ 149,370.00
					End Bal	$   277,866.25
Finished Inventory					Manufacturing Overhead
Beg Bal	$ 123,100.00				Beg Bal
(f)	$ 262,150.00	$     324,370.00	(g)		(b)	$     15,600.00	$ 242,891.25	(e )
					(c)	$     42,175.00
					(d)	$     24,200.00
End Bal	$    60,880.00				(d)	$     10,800.00
					(d)	$     20,100.00
						$   130,016.25
					End Bal	$                    -
Cost of Goods Sold					Sales Revenue
Beg Bal					Beg Bal
(g)	$ 324,370.00						$ 510,000.00	(h)
End Bal	$ 324,370.00				End Bal		$ 510,000.00
Non Manufacturing Expenses
Beg Bal
(d)	$    34,800.00
(d)	$    51,250.00
End Bal	$    86,050.00

3-a
Overhead Overapplied = $242891.25 - $15600 - 42175 - 24200 - 10800 - 20100 = $130016.25

3-b
Cost of Goods Sold will decrease, since Overhead is over-applied

4.

Cost of Goods manufactured
Beginning raw materials inventory	$    28,800.00
Add : Raw material purchases	$ 232,470.00
Less : Indirect Materials	$    15,600.00
Less : Ending raw materials inventory	$ 149,370.00
Direct material used	$    96,300.00
Direct Labor	$ 182,625.00
Manufacturing Overhead applied	$ 242,891.25
Total Manufacturing Costs	$ 521,816.25
Add : Beginning work in process inventory	$    18,200.00
Less : Ending work in process inventory	$ 277,866.25
Cost of Goods manufactured	$ 262,150.00

5.

Income Statement
Sales revenue		$     510,000.00
Cost of Goods Sold
Beginning finished goods inventory	$ 123,100.00
Add : Cost of Goods manufactured	$ 262,150.00
Less : Ending finished goods inventory	$    60,880.00
Unadjusted Cost of Goods Sold	$ 324,370.00
Less : Overhead applied	$ 130,016.25	$     194,353.75
Gross Profit		$     315,646.25
Non manufacturing expenses		$       86,050.00
Net Income from operations		$     229,596.25