Managerial Accounting Lamonda Corp. uses a job order cost system. On April 1, th
ID: 2402524 • Letter: M
Question
Managerial Accounting
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 $112,000, of which $16,000 was for general factory use.
(c) Recorded factory labor of $224,100, of which $43,575 was indirect.
(e) Applied overhead at a rate equal to 126 percent of direct labor cost.
(f) Completed jobs costing $261,850.
(g) Sold jobs costing $324,170.
(h) Recorded sales revenue of $516,000.
Selling expense Factory utilities Administrative expenses Factory rent $35,100 24,500 51,450 10,500 20,100Explanation / Answer
Raw Materials Inventory Bal 29,200 112,000 b) (a) 233,170 Bal. 150,370 Work in process inventory Bal 19,700 261,850 f) (b) 96,000 (c ) 180,525 (e ) 227461.50 Bal 261,836.50 Finished Goods inventory Bal 124,900 324,170 (g) (f) 261,850 Bal 62,580 Manufacturing Overhead Beg bal 0 (b) 16,000 227461.50 e) ( c) 43,575 (d) 24,500 (d) 10,500 (d) 20,100 Cost of goods sold (g) 324,170 Bal. 324,170 Sales Revenue 516,000 (h) 516,000 Bal Selling and administrative expense d) 35,100 d) 51,450 Bal. 86,550 (please don't enter zero except is beg balances, leave the lower boxes empty) 3-a) Manufacturing overhead Overapplied 112,786.50 3-b) Decrease Cost of goods manufactured report Beginning raw materials inventory 29,200 Add:Raw materials purchases 233,170 less:Indirect materials 16,000 less:Ending raw materials inventory 150,370 Direct materials used 96,000 Direct labor 180,525 Manufacturing overhead applied 227461.50 Total current manufacturing costs 503,986.50 Add:Beginning work in process inventory 19,700 less:Ending work in process inventory 261,836.50 Cost of goods manufactured. 261,850.00 Income Statement Sales Revenue 516,000 Cost of good sold Beginning finished goods inventory 124,900 Add cost of goods manufactured 261,850.00 less:Ending finished goods inventory 62,580 Unadjusted cost of goods sold 324,170.00 less:Overapplied manufacturing overhead 112,786.50 Adjusted cost of goods sold 211,383.50 Gross profit 304,616.5 Selling & administrative expense 86,550 Net income from operations 218,066.50
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