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
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 $232,170. (b) Requisitioned materials at a cost of $111,700, of which $16,600 was for general factory use. (c) Recorded factory labor of $224,300, of which $43,275 was indirect. (d) Incurred other costs:
Selling expense | $ | 35,400 |
Factory utilities | 24,500 | |
Administrative expenses | 51,250 | |
Factory rent | 11,300 | |
Factory depreciation | 19,700 | |
(e) Applied overhead at a rate equal to 139 percent of direct labor cost. (f) Completed jobs costing $263,650. (g) Sold jobs costing $323,270. (h) Recorded sales revenue of $520,000. 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.) 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.)
BEGINING BALANCES:
Raw Material : $28,800
Work in Progress Inventory: $19,500
Finished Goods Inventory: $124,300
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