Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balances:

The following transactions occurred during April:

(a) Purchased materials on account at a cost of $136,000.

(b) Requisitioned materials at a cost of $122,000, of which $28,000 was for general factory use.

(c) Recorded factory labor of $155,000, of which $24,000 was indirect.

(d) Incurred other costs:

Selling expense ...... $44,000

Factory utilities ..... 26,000

Administrative expenses .. 15,000

Factory rent ...... 30,000

Factory depreciation .... 24,000

(e) Applied overhead at a rate equal to 135 percent of direct labor cost.

(f) Completed jobs costing $375,000.

(g) Sold jobs costing $402,000.

(h) Recorded sales revenue of $500,000.

Required:

1. Post the April transactions to the T-accounts. 

2. Compute the balance in the accounts at the end of April.

3. Compute over- or underapplied manufacturing overhead. 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.

5. Prepare Lamonda's April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead.

Transcribed Image Text:

Raw Materials Inventory Bal. 25,000 Work in Process Inventory Finished Goods Inventory Bal. 55,000 Bal. 60,000 Manufacturing Overhead Cost of Goods Sold Sales Revenue Nonmanufacturing Expenses