Lamonda Corp. uses a job order cost system. On April 1, the accounts had balance
ID: 2608583 • 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 $233,270.
(b) Requisitioned materials at a cost of $112,100, of which $16,800 was for general factory use.
(c) Recorded factory labor of $224,900, of which $43,075 was indirect.
(d) Incurred other costs:
(e) Applied overhead at a rate equal to 130 percent of direct labor cost.
(f) Completed jobs costing $262,250.
(g) Sold jobs costing $323,370.
(h) Recorded sales revenue of $513,000.
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.)
References
eBook & Resources
Selling expense $ 35,700 Factory utilities 23,300 Administrative expenses 51,750 Factory rent 10,800 Factory depreciation 20,700Explanation / Answer
1 & 2) T-Accounts:
3a) Manufacturing overhead applied = $236372.50
Less: Actual Manuf overhead = 114675
Over-applied Manuf O/H = $121897.50
3b) COGS decreases by $121897.50
4)
Cost of goods manufactured :
5)
Income Statement :
Debit Entries Amount $ Credit Entries Amount $ Raw Material a/c: AP 233270 WIP 95300 C/B 121170 M O/H 16800 PAYROLL A/C : CASH 224900 WIP 181825 M O/H 43075 MANUF. O/H A/C : MATERI. 16800 WIP 236372.50 LABOR 43075 UTILITY 23300 RENT 10800 DEPRECIATION 20700 COGS (balancing figure) 121897.50 WIP ACCOUNT : RM 95300 FG INVENTORY 262250 DL 181825 C/B 251247.50 M O/H 236372.50 F G INVENTORY A/C : O/B (balancing figure) 61120 COGS 323370 WIP 262250Related Questions
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