Check my workCheck My Work button is now enabled

Item 17

Item 17 1.66 points

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 $231,870. (b) Requisitioned materials at a cost of $110,700, of which $16,100 was for general factory use. (c) Recorded factory labor of $225,100, of which $42,875 was indirect. (d) Incurred other costs:

Selling expense	$	34,700
Factory utilities		24,500
Administrative expenses		51,650
Factory rent		10,200
Factory depreciation		19,100

(e) Applied overhead at a rate equal to 128 percent of direct labor cost. (f) Completed jobs costing $263,050. (g) Sold jobs costing $323,870. (h) Recorded sales revenue of $500,000. 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 Lamondas cost of goods manufactured report for April. (Round your answers to 2 decimal places.) 5. Prepare Lamondas 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.)

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.)

Raw Materials Inventory					Work in Process Inventory
Beg. Bal.	28,300.00				Beg. Bal.	19,500.00
End. Bal.	28,300.00
					End. Bal.	19,500.00
Finished Goods Inventory					Manufacturing Overhead
Beg. Bal.	124,800.00				Beg. Bal.
End. Bal.	124,800.00
					End. Bal.		0.00
Cost of Goods Sold					Sales Revenue
Beg. Bal.					Beg. Bal.
End. Bal.	0.00				End. Bal.		0.00
Nonmanufacturing Expenses
Beg. Bal.
End. Bal.	0.00

Compute over- or underapplied manufacturing overhead. (Round your answer to 2 decimal places.)

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?

	Increase Decrease

Prepare Lamondas cost of goods manufactured report for April. (Round your answers to 2 decimal places.)

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

Prepare Lamondas 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.)

LAMONDA CORP.
Income Statement
For the Month of April
Cost of Goods Sold
Unadjusted Cost of Goods Sold
Adjusted Cost of Goods Sold
Net Income (Loss) from Operations