Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as...
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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 $110,900, of which $16,600 was for general factory use. (c) Recorded factory labor of $224,900, of which $43,375 was indirect. (d) Incurred other costs: Selling expense $34,600 Factory utilities 24,500 Administrative expenses 50,550 Factory rent 10,600 Factory depreciation 19,500 (e) Applied overhead at a rate equal to 129 percent of direct labor cost. (f) Completed jobs costing $263,550. (g) Sold jobs costing $323,570. (h) Recorded sales revenue of $510,000. Required: 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Post each transaction (d) cost separately. 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.) Raw Materials Inventory Beg. Bal. 29,600.00 Beg. Bal. End. Bal. 29,600.00 Work in Process Inventory 19,600.00 End. Bal. 19,600.00 Finished Goods Inventory Manufacturing Overhead Beg. Bal. 125,000.00 Beg. Bal. End. Bal. 125,000.00 End. Bal. Cost of Goods Sold Sales Revenue Beg. Bal. Beg. Bal. End. Bal. 0.00 Beg. Bal. Nonmanufacturing Expenses End. Bal. 0.00 0.00 Manufacturing Overhead LAMONDA CORP. Cost of Goods Manufactured Report For the Month of April Direct Materials Used Total Current Manufacturing Costs $ 0.00 Cost of Goods Manufactured Cost of Goods Sold LAMONDA CORP. Income Statement For the Month of April Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Net Income (Loss) from Operations 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 $110,900, of which $16,600 was for general factory use. (c) Recorded factory labor of $224,900, of which $43,375 was indirect. (d) Incurred other costs: Selling expense $34,600 Factory utilities 24,500 Administrative expenses 50,550 Factory rent 10,600 Factory depreciation 19,500 (e) Applied overhead at a rate equal to 129 percent of direct labor cost. (f) Completed jobs costing $263,550. (g) Sold jobs costing $323,570. (h) Recorded sales revenue of $510,000. Required: 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Post each transaction (d) cost separately. 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.) Raw Materials Inventory Beg. Bal. 29,600.00 Beg. Bal. End. Bal. 29,600.00 Work in Process Inventory 19,600.00 End. Bal. 19,600.00 Finished Goods Inventory Manufacturing Overhead Beg. Bal. 125,000.00 Beg. Bal. End. Bal. 125,000.00 End. Bal. Cost of Goods Sold Sales Revenue Beg. Bal. Beg. Bal. End. Bal. 0.00 Beg. Bal. Nonmanufacturing Expenses End. Bal. 0.00 0.00 Manufacturing Overhead LAMONDA CORP. Cost of Goods Manufactured Report For the Month of April Direct Materials Used Total Current Manufacturing Costs $ 0.00 Cost of Goods Manufactured Cost of Goods Sold LAMONDA CORP. Income Statement For the Month of April Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Net Income (Loss) from Operations
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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