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 $111,700, of
which $16,600 was for general factory use.
(c) Recorded factory labor of $224,300, of which $43,275
was indirect.
(d) Incurred other costs:
| Selling expense | $ | 35,400 |
| Factory utilities | 24,500 | |
| Administrative expenses | 51,250 | |
| Factory rent | 11,300 | |
| Factory depreciation | 19,700 | |
(e) Applied overhead at a rate equal to 139 percent of
direct labor cost.
(f) Completed jobs costing $263,650.
(g) Sold jobs costing $323,270.
(h) Recorded sales revenue of $520,000.
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.)
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.)
BEGINING BALANCES:
Raw Material : $28,800
Work in Progress Inventory: $19,500
Finished Goods Inventory: $124,300
Homework Answers
Answer -
1. & 2. Answer -
| Raw materials inventory | |||
| Beginning balance | $28800 | (b) | $111700 |
| (a) | $232170 | ||
| Ending balance | $149270 | ||
Calculation:
Ending balance = Beginning balance + Raw materials purchase - Requisitioned materials
= $28800 + $232170 - $111700
= $149270
| Work in process | |||
| Beginning balance | $19500 | (f) | 263650 |
| (b) | $95100 | ||
| (c) | $181025 | ||
| (e) | $251624.75 | ||
| Ending balance | $283599.75 | ||
Calculation:
(b) Direct materials = Requisitioned materials - General factory use
= $111700 - $16600
= $95100
(c) Direct labor = Factory labor - Indirect labor
= $224300 - $43275
= $181025
(e) Applied overhead = Direct labor * 139%
= $181025 * 139%
= $251624.75
Ending balance = Beginning balance + Direct materials + Direct labor + Applied overhead - Jobs costing
= $19500 + $95100 + $181025 + $251624.75 - $263650
= $283599.75
| Finished goods inventory | |||
| Beginning balance | $124300 | (g) | 323270 |
| (f) | $263650 | ||
| Ending balance | $64680 | ||
Calculation:
Ending balance = Beginning balance + Jobs costing - Cost of goods sold
= $124300 + $263650 - $323270
= $64680
| Cost of goods sold | |||
| (g) | $323270 | ||
| Ending balance | $323270 | ||
| Manufacturing overhead | |||
| (b) | $16600 | (e) | $251624.75 |
| (c) | $43275 | ||
| (d) | $55500 | ||
| Ending balance | $136249.75 | ||
Calculation:
(d) Factory overhead = Factory utilities + Factory rent + Factory depreciation
= $24500 + $11300 + $19700
= $55500
Ending balance = Applied overhead - (General factory use + Indirect labor + Factory overhead)
= $251624.75 - ($16600 + $43275 + $55500)
= $136249.75
| Sales revenue | |||
| (h) | $520000 | ||
| Ending balance | $520000 | ||
| Selling and administrative expense | |||
| (d) | $86650 | ||
| Ending balance | $86650 | ||
3-a. Answer -
Over-applied manufacturing overhead = $136249.75
Calculation:
Direct labor cost = Factory labor - Indirect labor
= $224300 - $43275
= $181025
As per given information, Applied overhead rate is 139% of direct labor cost
Applied overhead = Direct labor * 139%
= $181025 * 139%
= $251624.75
And
Actual overhead = Raw materials (general factory uses) + Indirect labor + Factory utilities + Factory rent + Factory depreciation
= $16600 + $43275 + $24500 + $11300 + $19700
= $115375
Therefore,
Over-applied manufacturing overhead:
= Applied overhead - Actual overhead
= $251624.75 - $115375
= $136249.75
4. Answer -
| Lamonda Corp. | ||
| Cost of Goods Manufacturing Report | ||
| For the Month of April | ||
| Beginning raw materials inventory | $28800 | |
| Add: Raw materials purchases | $232170 | |
| Less: Indirect materials (General factory use) | ($16600) | |
| Less: Ending raw materials inventory | ($149270) | |
| Direct materials used | $95100 | |
| Direct labor | $181025 | |
| Manufacturing overhead applied | $251624.75 | |
| Total current manufacturing costs | $527749.75 | |
| Add: Beginning work in process inventory | $19500 | |
| Less: Ending work in process inventory | ($283599.75) | |
| Cost of goods manufactured | $263650 | |
Calculation:
1. Direct materials used:
= Beginning raw materials inventory + Raw materials purchases - Indirect materials - Ending raw materials inventory
= $28800 + $232170 - $16600 - $149270
= $95100
2. Direct labor:
= Factory labor - Indirect labor
= $224300 - $43275
= $181025
3. Manufacturing overhead applied:
= Direct labor * 139%
= $181025 * 139%
= $251624.75
4. Total current manufacturing costs:
= Direct materials used + Direct labor + Manufacturing overhead applied
= $95100 + $181025 + $251624.75
= $527749.75
5. Cost of goods manufactured:
= Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory
= $527749.75 + $19500 - $283599.75
= $263650
5. Answer -
| Lamonda Corp. | ||
| Income Statement | ||
| For the Month of April | ||
| Sales revenue | $520000 | |
| Cost of goods sold: | ||
| Beginning finished goods inventory | $124300 | |
| Add: Cost of goods manufactured | $263650 | |
| Less: Ending finished goods inventory | ($64680) | |
| Unadjusted cost of goods sold | $323270 | |
| Less: Over-applied manufacturing overhead | ($136249.75) | $187020.25 |
| Gross margin | $332979.75 | |
| Selling and administrative expenses | ($86650) | |
| Net income from operations | $246329.75 | |
Calculation:
1. Cost of goods sold:
Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $124300 + $263650 - $64680
= $323270
Cost of goods sold = Unadjusted cost of goods sold - Over-applied manufacturing overhead
= $323270 - $136249.75
= $187020.25
2. Gross margin:
= Sales revenue - Cost of goods sold
= $520000 - $187020.25
= $332979.75
3. Selling and administrative expenses:
= Selling expense + Administrative expense
= $35400 + $51250
= $86650
4. Net income from operations:
= Gross margin - Selling and administrative expenses
= $332979.75 - $86650
= $246329.75
Note - Referred T-accounts for beginning balance and ending balance for accounts such as raw materials inventory, Work in process inventory, Finished goods inventory etc.
Add Answer to:
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...
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 $233,270. (b) Requisitioned materials at a cost of $111,600, of which $15,800 was for general factory use. (c) Recorded factory labor of $224,800, of which $42,975 was indirect. (d) Incurred other costs: Selling expense $ 34,100 Factory utilities 23,500 Administrative expenses 50,250 Factory rent...
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...
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...
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 $136,000. (b) Requisitioned materials at a cost of $122,000, of which $28,000 was for general factory use. (c) Recorded factory labor of $155,000, of which $24,000 was indirect. (d) Incurred other costs: Selling expense $ 44,000 Factory utilities 26,000 Administrative expenses 15,000 Factory rent...
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 $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...
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 $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...
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...
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...
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...
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 $232,170.
(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 $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 $232,770. (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 $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 $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,...
Most questions answered within 3 hours.
-
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 1 hour ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 1 hour ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 1 hour ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 2 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 2 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 2 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 2 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 2 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 2 hours ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 2 hours ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 2 hours ago -
How much money should be invested today in order to have $8340
at the end of...
asked 2 hours ago