PA2-1 (Static) 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 $136,000 (b) Requisitioned materials at a cost of $122,000, of which $28,000 was for general factory use. (c) Recorded factory labor of $155,000, of which $24,000 was indirect, (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $44,000 26,000 15,000 30,000 24,000 (e) Applied overhead at a rate equal to 135 percent of direct labor cost. in Completed jobs costing $375,000 (9) Sold jobs costing $402,000 (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.) 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 underapplied manufacturing overhead. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3a Reg 3b Reg 4 Req5 Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Post each transaction separately.) Raw Materials Inventory 25,000 Work in Process Inventory 55.000 Beg Bal Beg. Bal End. Bal. 25,000 End. Bal. 55,000 Finished Goods Inventory 60,000 Manufacturing Overhead Beg Bal Beg. Bal End Bal 60.000 End. Bal 0 Cost of Goods Sold Sales Revenue Beg Bail Beg Bal. End Bal 0 End. Bal. 0 Nonmanufacturing Expenses Beg Bal End. Bal 0 Reg 1 and 2 Reg Req 3b Req 4 Req 5 Compute over- or underapplied manufacturing overhead. Manufacturing Overhead Req 1 and 2 Req 3a Req 3b Reg 4 Reg 5 If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will cos or decrease? O Increase Decrease Req 1 and 2 Reg 3a Req 3b Reg 4 Reg 5 Prepare Lamonda's cost of goods manufactured report for April. LAMONDA CORP. Cost of Goods Manufactured Report For the Month of April Direct Materials Used Total Current Manufacturing Costs o Cost of Goods Manufactured Req 1 and 2 Req 3a Req 3b Reg 4 Reg 5 Prepare Lamonda's April income statement. Include any adjustment to Cost of Goo underapplied manufacturing overhead. 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
