PA2-1 (Algo) Recording Manufacturing and Nonmanufacturing Costs, Preparing the Cost of Goods Manufactured Report and Income Statement [LO 2-3, 2-4, 2-5, 2-6] 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 $232,570. (b) Requisitioned materials at a cost of $111,700, of which $15,800 was for general factory use. (c) Recorded factory labor of $223,900, of which $42,275 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $34,600 24,100 51,050 11,600 20, 100 (e) Applied overhead at a rate equal to 128 percent of direct labor cost. (f) Completed jobs costing $262,250. (g) Sold jobs costing $322,770. (h) Recorded sales revenue of $507,000. 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 Work in Process Inventory Beg. Bal. 28,800.00 Beg. Bal. 18,800.00 End. Bal. 28,800.00 End. Bal. 18,800.00 Finished Goods Inventory Manufacturing Overhead Beg. Bal. 123,700.00 Beg. Bal. End. Bal. 123,700.00 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 Req 1 and 2 Req 3a > Req 1 and 2 Reg Req 3b Reg 4 Reg 5 Compute over- or underapplied manufacturing overhead. (Round your answer to 2 decimal places.) Manufacturing Overhead Req 1 and 2 Reg Reg 3b Req 4 Reg 5 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 Lamonda's 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 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
