Please do the attach. Thank you Lemmon Co.'s March 31 inventory of raw materials is $170,000. Raw material purchases in April are $310,000 and factory payroll cost in April is $224,000. Overhead costs incurred in Apri are: indirect material,$25,000; indirect labor, $19,000; factory rent,$25,000; factory utilities, $13,000; and factory equipment depreciation,$41,000. The predetermined overhead rate is 6% of direct labor cost. Job 306 is solid for $400,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job308 Balance on March 31 Direct material.......$ 9,000 $17,000 Direct labor.......... 19,000 5,000 Applied overhead...... 12,350 3,250 Costs durning April Direct materials...... 75,000 160,000 $ 65,000 Direct labor.......... 31,000 74,000 100,000 Applied Overhead....... ? ? ? Status on April 30..Finish(sold)Finish(unsold)In process ________________________________________________________ Required: 1. Determine the total each production cost incurred for April(direct labor,direct materials, and applied over head), and the total cost assigned to each job(including the balance from March 31). 2. Prepare journal entries for the month of April to record the following. a. Materials purchases (on credit), factory payroll(paid in cash), and actual overhead costs including indirect materials and indirect labor.(Factory rent and utilities are paid in cash.) b. Assignment of direct materials, direct labor, and applied overhead costs to the Goods in process Inventory. c. Transfer of jobs 306 and 307 to the Finished Goods Inventory. d. cost of goods sold for Job 306. e. Revenue from the sale of Job 306. f. Assignment of any underapplied overhead to the Cost of Goods Solds account.(The amont is not material.) 3. Prepare a manufacturing statement for April (use a single line presentation for direct materials and show the details of overhead cost). 4. compute gross profit for April. show how to present the inventories on the April 30 balance sheet. Analysis Component 5. The over-or underapplied overhead is closed to Cost of Goods Sold. Discuss how this adjustment impacts business decision making regarding individual job or batches of jobs

Problem 19-1 A Part 1 Total Manufacturing costs and the costs assigned to each job 306 307 308 From March Direct Materials Direct Labor Applied Overhead* Beginning goods in process - - For April Direct Materials Direct Labor Applied Overhead* Total Cost added in April Total Cost - - Total Costs - - April Total 0 0 - - * Equals 65% of direct labor cost. Part 2 Journal Entries for April a. Raw Materials Inventory Accounts Payable To record materials purchase. Factory Payroll Cash To record factory payroll. Factory Overhead Raw Materials Inventory To record indirect materials Factory Overhead Factory Payroll To record indirect labor. Factory Overhead Cash To record factory rent. Factory Overhead Cash To record factory utilities. Factory Overhead Accumulated Depreciation- Factory Equipment To record other factory overhead. b. Goods in Process Inventory Raw Materials Inventory To assign direct materials to jobs. Goods in Process Inventory Factory Overhead To apply overhead to jobs. c. Finished Goods Inventory (306 & 307) Goods in Process Inventory To record jobs completed (166,500+307,350) d. Cost of Goods Sold (306) Finished Goods Inventory To record cost of sale of job. e. Cash Sales To record sale of job. f. Factory Overhead* Cost of Goods Sold To assign overapplied overhead *Overhead applied to job Overhead incurred Indirect Materials Indirect Labor Factory Rent Factory Utilities Factory Equipment depreciation Overapplied overhead 0 0 Part 3 LEMMON COMPANY Manufacturing Statement For Month Ended April 30 Direct Materials Used Direct Labor Used Factory Overhead Indirect Materials Indirect Labor Factory Rent Factory Utilities Depreciation of Equipment Total Manufacturing Costs Add goods in process, March 31 ( 306 & 307) Total Cost of goods in proces Deduct Goods in Process, April 30 ( 308) Add overapplied overhead* Cost of goods manufactured ( 306 & 307) 0 0 0 0 Alternatively, overapplied overhead can be listed among factory overhead items. Part 4 Gross Profit on the income statement for the month ended April 30 Sales Cost of Goods Sold Gross Profit - Presentation of inventories on the April 30 balance sheet. Inventories: Raw Materials Goods in Process ( Job 308) Finished Goods ( Job 307) Total Inventories - Note 1: Beginning raw materials inventory Purchases Direct Materials Used Indirect Materials Used Ending raw materials inventory - Part 5 Overhead is overapplied by $ 10,250 , meaning that individual jobs or batches of jobs are over-costed. Thus, profits at the job ( and batch) level are understated. (Note 1)