CHAPTER 2 GROUP A PROBLEMS a Connect PA24 Recording Manufacturing and Nonmanufacturing Costs, Preparing the Cost of Goods Manufactured Report and Income Statement Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balances. LO 2-3 Raw Materials Inventory Work in Process Inventory Finished Goods Inventary Bal. 25.000 Bal. 55.000 Bal. 60.000 Manufacturing Overhead Cost of Goods Sold Sales Revenue Nonmanufacturing Expenses The following transactions occurred during April: a. Purchased materials on account at a cost of $136.000. b. Requisitioned materials at a cost of S122.000, of which $28,000 was for general factory use. c. Recorded factory labor of S155.000, of which $24,000 was indirect. d. Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $44,000 26,000 15.000 30,000 24,000 e. Applied overhead at a rate equal to 135 percent of direct labor cost. f Completed jobs costing $375,000. 8. Sold jobs costing S402.000. h. Recorded sales revenue of $500,000. Required: 1. Post the April transactions to the T-accounts. (Note: Some transactions will affect other accounts not shown; e.g., Cash, Accounts Payable, Accumulated Depreciation. You do not need to show the offsetting debit or credit to those accounts.) Compute the balance in the accounts at the end of April. 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