Lamonda Corp. uses a job order cost system. On April 1, the accounts had balance
ID: 2336057 • Letter: L
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 $110,800, of which $15,200 was for general factory use (c) Recorded factory labor of $225,700, of which $43,175 was indirect. (d) Incurred other costs Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $35,300 23,800 51,050 11,700 19,000 (e) Applied overhead at a rate equal to 130 percent of direct labor cost. (f Completed jobs costing $261,850 (g) Sold jobs costing $322,970 (h) Recorded sales revenue of $506,000Explanation / Answer
Solution 1&2:
Solution 3a:
Overapplied overhead = Overhead applied - Overhead incurred = $237,282.50 - $112,875 = $124,407.50
Solution 3b:
If balance in manufacturing overhead is closed directly to Cost of goods sold then cost of goods sold will decrease
Solution 4:
Solution 5:
Raw Material Inventory Particulars Debit Particulars Credit Beginning Balance $28,700.00 b $110,800.00 a $233,470.00 Ending balance $151,370.00Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.