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Item 17

Item 17 1.66 points

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 $231,870.
(b) Requisitioned materials at a cost of $110,700, of which $16,100 was for general factory use.
(c) Recorded factory labor of $225,100, of which $42,875 was indirect.
(d) Incurred other costs:

Selling expense	$	34,700
Factory utilities		24,500
Administrative expenses		51,650
Factory rent		10,200
Factory depreciation		19,100

(e) Applied overhead at a rate equal to 128 percent of direct labor cost.
(f) Completed jobs costing $263,050.
(g) Sold jobs costing $323,870.
(h) Recorded sales revenue of $500,000.

Required:
1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Post each transaction (d) cost separately. 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.)

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

	Raw Materials Inventory Work in Process Inventory Beg. Bal. 28,300.00 Beg. Bal. 19,500.00 End. Bal. 28,300.00 End. Bal. 19,500.00 Finished Goods Inventory Manufacturing Overhead Beg. Bal. 124,800.00 Beg. Bal. End. Bal. 124,800.00 End. Bal. 0.00 Cost of Goods Sold Sales Revenue Beg. Bal. Beg. Bal. End. Bal. 0.00 End. Bal. 0.00 Nonmanufacturing Expenses Beg. Bal. End. Bal. 0.00

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

	Manufacturing Overhead

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

	Increase Decrease

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

	LAMONDA CORP. Cost of Goods Manufactured Report For the Month of April Direct Materials Used Total Current Manufacturing Costs $0.00 Cost of Goods Manufactured

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.)

	LAMONDA CORP. Income Statement For the Month of April Cost of Goods Sold Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Net Income (Loss) from Operations

Answer 1

Requirement (182) Raw Materials Inventory Beginning Balance $ 28,300 (a) $ 231,870 $110,700 (b) Work in Process Inventory Beginning Balance $ 19,500 $263,050 (1) (b) $ 94,600 $ 182,225 $ 233,248 Ending Balance $ 149,470 Ending Balance $ 266,523 Finished Goods Inventory Beginning Balance $ 124,800 $ 263,050 $323,870 (9) Ending Balance $ 63,980 Manufacturing Overhead Beginning Balance $ 233,248 (e) (b) $ 16,100 (c.) $ 42,875 (d) $ 24,500 (d) $ 10,200 (d) $ 19,100 Ending Balance $ 120,473 Sales Revenue Cost of goods sold Beginning Balance (9) $ 323,870 Beginning Balance $ 500,000 (h) Ending Balance $ 323,870 Ending Balance $ 500,000 Non Manufacturing Expense Beginning Balance (d) $ 34,700 (d) $ 51,650 Ending Balance $ 86,350 $

Requirement (3) Actual Overhead Applied Overhead $ 112,775 $ 233,248 $500,000 Manufacturing overhead Overapplied $ 120,473 Requirement (3)(b) Decrease Requirement (5) Lamonda Corp Income Statement For the Month of April 30 Sales Revenue Cost of goods sold Beginning Finished goods inventory $ 124,800 Add : Cost of goods manufactured $ 263,050 Less : Ending Finished goods inventory $ 63,980 Unadjusted cost of goods sold $ 323,870 Less : Over applied Manufacturing overhead $ 120,473 Adjusted cost of goods sold Gross profit Selling and administrative expense Net Income (loss) From Operations $203,397 $ 296,603 $ 86,350 $ 210,253 Requirement (4) Lamonda Corp Cost of goods Manufactured Report For the Month of April 30 Beginning Raw Materials Inventory $ 28,300 Add : Raw Material Purchases $ 231,870 Less : Indirect Materials $ 16,100 Less : Ending Raw Material Inventory $ 149,470 Direct Materials Used $ 94,600 Direct Labour $ 182,225 Manufacturing Overhead applied $ 233,248 Note : Please comment down for any further clarifications Total Current Manufacturing costs Add : Beginning Work in Process Inventory Less : Ending Work in Process Inventory Cost of goods Manufactured $ 510,073 $ 19,500 $ 266,523 $ 263,050