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 $231,870. (b) Requisitioned materials at a cost of $111,700, of which $15,400 was for general factory use. (c) Recorded factory labor of $224,500, of which $42,975 was indirect. (d) Incurred other costs:

Selling expense	$	35,400
Factory utilities		23,600
Administrative expenses		51,250
Factory rent		11,300
Factory depreciation		20,900

(e) Applied overhead at a rate equal to 133 percent of direct labor cost. (f) Completed jobs costing $263,550. (g) Sold jobs costing $323,270. (h) Recorded sales revenue of $512,000. 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.)

Raw Materials Inventory Work in Process Inventory Beg. Bal. 29,900.00 Beg. Bal. 19,800.00 End. Bal 29,900.00 End. Bal. 19,800.00 Manufacturing Overhead Finished Goods Inventory 124,900.00 Beg. Bal. Beg. Bal. End. Bal. 124,900.00 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. JA End. Bal. 0.00 Manufacturing Overhead Overapplied by 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 O Decrease LAMONDA CORP Cost of Goods Manufactured Report For the Month of April Beginning Raw Materials Inventory $ 29,900.00 Plus: Raw Material Purchases 231,870.00 Less: Indirect Materials 15,400.00 Less: Ending Raw Materials Inventory Direct Materials Used Direct Labor Manufacturing Overhead Applied Less: Ending Work in Process Inventory Total Current Manufacturing Costs $ 0.00 Plus: Beginning Work in Process Inventory Less: Ending Work in Process Inventory 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