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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 $232,070. (b) Requisitioned materials at a cost of $110,800, of which $15,600 was for general factory use. (c) Recorded factory labor of $225,100, of which $43,475 was indirect. (d) Incurred other costs: Selling expense $ 34,500 Factory utilities 23,400 Administrative expenses 50,850 Factory rent 11,800 Factory depreciation 20,500 (e) Applied overhead at a rate equal to 133 percent of direct labor cost. (f) Completed jobs costing $262,150. (g) Sold jobs costing $322,970. (h) Recorded sales revenue of $503,000.

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.)

Solutions

Expert Solution

1&2 as per given data T-Accounts at The End of April:

First We Are Taking Raw Material Inventory

Opening balance	28100	110400	(B)
(a)	232070

Ending Balance	149770

Then We Are Taking Work In Process of Inventory

Opening Balance	19900	263450	(f)
(A)	94800
(c)	182425
(e)	259044*
Ending balance	292719

*(225100-42675)*142%=259044

Then We are Taking Finished Goods Inventory

Opening Balance	124200	324570	(g)
(f)	263450
Closing Balance	63080

After That Manufacturing Over Heads

(b)	15600	259044	(e)
(c)	42675
(d)	23900
(d)	11100
(d)	19500

Closing Balance		146269

The Cost Of Goods Sold

(g)	324570


Closing Balance	324570

Then We are Taking sales Revenue

	505000	(f)

Ending Balance	505000

Selling Administrative Expenses

(d)	35700
(d)	51150
Closing Balance	86850

(3) Under Applied Of Over Heads:

Given That Problem We Are Taking The Only Manufacturing Of Over Heads Over Applied

Manufacturing Of Over heads Over Applied = $146269

(4) Cost Of goods manufacture report for April

Opening Raw Materials Inventory	28100
Add:Raw Materials To Purchase	232070
Less:Indirect Materials	15600
Less:Ending Raw Materials inventory	149770
Direct Material Used	94800
Direct Labour	182425
Manufacturing Over Heads Applied	259044
Total Current manufacturing Cost	536269
add:Beginning Inventory	19900
Less:Ending Inventory	292719

ToTal Cost of Goods manufactured =263450

(5)Income Statement For Under applied manufactured Over heads

sales Revenue		505000
Cost of Goods Sold
Opening Factory Goods Inventory	124200
Add:Manufactured cost goods	263450
Less:Closing factory Goods Inventory	63080
Cost Of Goods Sold for UnAdjusted	324570
Less: Manufactured Over Heads Over Applied	14269	178303
Gross Profit		326697
Selling And Adminiustrative Expences		86850

Net Income ( Loss)From Operation		239847

ekkarill92 answered 11 months ago

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