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 $111,200, of
which $16,500 was for general factory use.
(c) Recorded factory labor of $223,900, of which $42,875
was indirect.
(d) Incurred other costs:
Selling expense | $ | 35,600 |
Factory utilities | 24,000 | |
Administrative expenses | 51,850 | |
Factory rent | 11,500 | |
Factory depreciation | 19,100 | |
(e) Applied overhead at a rate equal to 130 percent of
direct labor cost.
(f) Completed jobs costing $262,750.
(g) Sold jobs costing $323,970.
(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?
Decrease | |
Increase |
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.)
Raw Materials Inventory | |||||||
Bal | 29,100 | 111,200 | b) | ||||
(a) | 231,870 | ||||||
Bal. | 149,770 | ||||||
Work in process inventory | |||||||
Bal | 19,900 | 262,750 | f) | ||||
(b) | 94,700 | ||||||
(c ) | 181,025 | ||||||
(e ) | 235332.50 | ||||||
Bal | 268,207.50 | ||||||
Finished Goods inventory | |||||||
Bal | 124,200 | 323,970 | (g) | ||||
(f) | 262,750 | ||||||
Bal | 62,980 | ||||||
Manufacturing Overhead | |||||||
Beg bal | 0 | ||||||
(b) | 16,500 | 235332.50 | e) | ||||
( c) | 42,875 | ||||||
(d) | 24,000 | ||||||
(d) | 11,500 | ||||||
(d) | 19,100 | ||||||
End bal | 121357.50 | ||||||
Cost of goods sold | |||||||
Beg bal | 0 | ||||||
(g) | 323,970 | ||||||
Bal. | |||||||
Sales Revenue | |||||||
Beg.Bal | 0 | ||||||
510,000 | (h) | ||||||
end bal | 510,000 | ||||||
Selling and administrative expense | |||||||
Beg bal | 0 | ||||||
(d) | 35,600 | ||||||
(d) | 51,850 | ||||||
Bal. | 87,450 | ||||||
3-a) | |||||||
Manufacturing overhead | Overapplied | 121,357.50 | |||||
3-b) | Decrease | ||||||
Cost of goods manufactured report | |||||||
Beginning raw materials inventory | 29,100 | ||||||
Add:Raw materials purchases | 231,870 | ||||||
less:Indirect materials | 16,500 | ||||||
less:Ending raw materials inventory | 149,770 | ||||||
Direct materials used | 94,700 | ||||||
Direct labor | 181,025 | ||||||
Manufacturing overhead applied | 235332.50 | ||||||
Total current manufacturing costs | 511,057.50 | ||||||
Add:Beginning work in process inventory | 19,900 | ||||||
less:Ending work in process inventory | 268,207.50 | ||||||
Cost of goods manufactured. | 262,750.00 | ||||||
Income Statement | |||||||
Sales Revenue | 510,000 | ||||||
Cost of good sold | |||||||
Beginning finished goods inventory | 124,200 | ||||||
Add cost of goods manufactured | 262,750.00 | ||||||
less:Ending finished goods inventory | 62,980 | ||||||
Unadjusted cost of goods sold | 323,970.00 | ||||||
less:Overapplied manufacturing overhead | 121,357.50 | ||||||
Adjusted cost of goods sold | 202,612.50 | ||||||
Gross profit | 307,387.50 | ||||||
Selling & administrative expense | 87,450 | ||||||
Net income from operations | 219,937.50 |
Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as...
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 $232,170. (b) Requisitioned materials at a cost of $112,000, of which $15,600 was for general factory use. (c) Recorded factory labor of $224,400, of which $43,075 was indirect. (d) Incurred other costs: Selling expense$35,400 Factory utilities 23,200 Administrative expenses 51,150 Factory rent 11,400...
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 $16,000 was for general factory use. (c) Recorded factory labor of $224,400, of which $43,375 was indirect. (d) Incurred other costs: Selling expense $ 34,700 Factory utilities 23,900 Administrative expenses 51,750 Factory rent...
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 $232,770 (b) Requisitioned materials at a cost of $111,600, of which $15,400 was for general factory use (c) Recorded factory labor of $224,900, of which $41,875 was indirect. (d) Incurred other costs Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation S34,500 22,900...
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 $232,770. (b) Requisitioned materials at a cost of $111,900, of which $16,200 was for general factory use. (c) Recorded factory labor of $224, 100, of which $42,275 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation...
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 $233,470. (b) Requisitioned materials at a cost of $111,600, of which $15,500 was for general factory use. (c) Recorded factory labor of $224,100, of which $42,175 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $ 35,900...
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 $110,500, of which $15,500 was for general factory use. (c) Recorded factory labor of $225,100, of which $42,975 was indirect. (d) Incurred other costs: Selling expense $ 35,300 Factory utilities 24,400 Administrative expenses 50,250 Factory rent...
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 $233,27O. (b) Requisitioned materials at a cost of $111,100, of which $16,500 was for general factory use. (C) Recorded factory labor of $224,500, of which $43,375 was indirect. (d) Incurred other costs: Selling expense $34,700 Factory utilities 24,500 Administrative 51,250 expenses Factory rent Factory...
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,...
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 $232,970. (b) Requisitioned materials at a cost of $112,300, of which $16,000 was for general factory use. (c) Recorded factory labor of $224,900, of which $43,375 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $35,600 23,700...
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 $233,170. (b) Requisitioned materials at a cost of $110,800, of which $15,200 was for general factory use. (c) Recorded factory labor of $224,500, of which $43,675 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $ 35,...