Saturday 19 May 2012

Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balance.

Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balance.
 
  Raw materials inventory $ 28,800  
  Work in process inventory 18,200  
  Finished goods inventory 123,200  

 
The following transactions occurred during April.
 
(a) Purchased materials on account, $233,270.
(b)
Requisitioned materials, $111,400, of which $15,500 was for general factory use.
(c) Recorded factory labor of $224,000, of which $42,675 was indirect.
(d) Incurred other costs:
 
  Selling expense $ 35,900  
  Factory utilities 24,700  
  Administrative expenses 51,450  
  Factory rent 11,100  
  Factory depreciation 19,300  

 
(e)
Applied overhead during the month totaling $134,860.
(f) Completed jobs costing $261,950.
(g) Sold jobs costing $323,070.
(h) Recorded sales revenue of $517,000.

Requirements 1 & 2:
Post the April transaction to the T-accounts and compute the balance in the accounts at the end of April. (Record the transactions in the given order. Omit the "$" sign in your response.)
 
Raw Materials Inventory


  Bal. 28,800     (b)  
  (a)  


  Bal.  


 
Work in Process Inventory


  Bal. 18,200     (f)  
  (b)  
  (c)  
  (e)  


  Bal.  


 
Finished Goods Inventory


  Bal. 123,200     (g)  
  (f)  


  Bal.  


 
Manufacturing Overhead


  (b)     (e)  
  (c)  
  (d)  
  (d)  
  (d)  
 
Cost of Goods Sold


  (g)  


  Bal.  


 
Sales Revenue


  (h)  


  Bal.  


 
Non-Manufacturing Expenses


  (d)  
  (d)  


  Bal.  



 
Requirement 3:
Compute over- or underapplied manufacturing overhead. (Input the amount as positive value. Omit the "$" sign in your response.)
 
  Manufacturing overhead overapplied $  
 
Requirement 4:
Prepare Lamonda's cost of goods manufactured report for April. (Input all amounts as positive values.Omit the "$" sign in your response.)
 
Lamonda Company
Cost of Goods Manufactured Report
For the Month of April
  Beginning raw materials inventory $   
    Add: Raw material purchases   
    Less: Indirect materials   
    Less: Ending raw materials inventory   

  Direct materials used   
  Direct labor   
  Manufacturing overhead applied   

  Total current manufacturing costs   
  Add: Beginning work in process inventory   
  Less: Ending work in process inventory   

  Cost of goods manufactured $   



 
Requirement 5:
Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Input all amounts as positive values. Omit the "$" sign in your response.)
 
Lamonda Company
Income Statement
For the Month of April
  Sales revenue $  
  Cost of goods sold
    Beginning finished goods inventory
    Add: Cost of goods manufactured
    Less: Ending finished goods inventory

   Unadjusted cost of goods sold
    Less: Overerapplied manufacturing overhead  


  Gross profit  
  Selling and administrative expenses  

  Net income from operations $  



 

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