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 $233,470.
(b) Requisitioned materials at a cost of $112,200, of which $16,000 was for general factory use.
(c) Recorded factory labor of $223,700, of which $42,075 was indirect.
(d) Incurred other costs:

Selling expense	$	35,600
Factory utilities		24,400
Administrative expenses		51,050
Factory rent		10,300
Factory depreciation		19,800

(e) Applied overhead at a rate equal to 127 percent of direct labor cost.
(f) Completed jobs costing $262,550.
(g) Sold jobs costing $322,670.
(h) Recorded sales revenue of $505,000.

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.)

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.)

	Raw Materials Inventory Work in Process Inventory Beg. Bal. 29,400.00 Beg. Bal. 18,900.00 End. Bal. End. Bal. Finished Goods Inventory Manufacturing Overhead Beg. Bal. 123,100.00 Beg. Bal. End. Bal. End. Bal. Cost of Goods Sold Sales Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Nonmanufacturing Expenses Beg. Bal. End. Bal.

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 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

	Raw Materials Inventory
Bal	29,400	112,200	b)
(a)	233,470
Bal.	150,670
	Work in process inventory
Bal	18,900	262,550	f)
(b)	96,200
(c )	181,625
(e )	230663.75
Bal	264,838.75
	Finished Goods inventory
Bal	123,100	322,670	(g)
(f)	262,550
Bal	62,980
	Manufacturing Overhead
Beg bal	0
(b)	16,000	230663.75	e)
( c)	42,075
(d)	24,400
(d)	10,300
(d)	19,800
End bal		118088.75
	Cost of goods sold
Beg bal	0
(g)	322,670
Bal.
	Sales Revenue
Beg.Bal		0
		505,000	(h)
end bal		505,000
	Selling and administrative expense
Beg bal	0
(d)	35,600
(d)	51,050
Bal.	86,650
3-a)
Manufacturing overhead				Overapplied		118,088.75
3-b)	Decrease
Cost of goods manufactured report
Beginning raw materials inventory						29,400
Add:Raw materials purchases						233,470
less:Indirect materials						16,000
less:Ending raw materials inventory						150,670
Direct materials used						96,200
Direct labor						181,625
Manufacturing overhead applied						230663.75
Total current manufacturing costs						508,488.75
Add:Beginning work in process inventory						18,900
less:Ending work in process inventory						264,838.75
Cost of goods manufactured.						262,550.00
Income Statement
Sales Revenue							505,000
Cost of good sold
Beginning finished goods inventory						123,100
Add cost of goods manufactured						262,550.00
less:Ending finished goods inventory						62,980
Unadjusted cost of goods sold						322,670.00
less:Overapplied manufacturing overhead						118,088.75
Adjusted cost of goods sold							204,581.25
Gross profit							300,418.75
Selling & administrative expense							86,650
Net income from operations							213,768.75