Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lamonda Corporation uses a job order cost system. On April1, the accounts had balances as shown in the T-accounts below: The following transactions occurred during

image text in transcribed
image text in transcribed
image text in transcribed
Lamonda Corporation uses a job order cost system. On April1, 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 $232,770. b. Requisitioned materials at a cost of $111,400, of which $16,200 was for general factory use. c. Recorded unpaid factory labor of $224,800, of which $43,675 was indirect. d. Incurred other costs: e. Applied overhead at a rate equal to 140 percent of direct labor cost. f. Completed jobs costing $263,450. . g. Sold jobs costing $324,370. h. Recorded sales revenue (on account) of $511,000. Required: 1. \& 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. 3-a. Compute over- or underapplied manufacturing overhead. 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. 5. Prepare Lamonda's April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over-or underapplled manufacturing overhead. Complete this question by entering your answers in the tabs below. Prepare Lamonda's cost of goods manufactured report for April. Note: Round your answers to 2 decimal places. underapplied manufacturing overhead. Note: Round your answers to 2 decimal places. Lamonda Corporation uses a job order cost system. On April1, 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 $232,770. b. Requisitioned materials at a cost of $111,400, of which $16,200 was for general factory use. c. Recorded unpaid factory labor of $224,800, of which $43,675 was indirect. d. Incurred other costs: e. Applied overhead at a rate equal to 140 percent of direct labor cost. f. Completed jobs costing $263,450. . g. Sold jobs costing $324,370. h. Recorded sales revenue (on account) of $511,000. Required: 1. \& 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. 3-a. Compute over- or underapplied manufacturing overhead. 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. 5. Prepare Lamonda's April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over-or underapplled manufacturing overhead. Complete this question by entering your answers in the tabs below. Prepare Lamonda's cost of goods manufactured report for April. Note: Round your answers to 2 decimal places. underapplied manufacturing overhead. Note: Round your answers to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fia Foundations Of Financial Accounting Ffa Interactive Text

Authors: BPP Learning Media

1st Edition

1509724176, 978-1509724178

More Books

Students also viewed these Accounting questions