90.2K

Verified Solution

Link Copied!

Lamonda Corporation 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 $233,170. b. Requisitioned materials at a cost of $111,700, of which $16,800 was for general factory use. c. Recorded unpaid factory labor of $224,700, of which $43,375 was indirect. d. Incurred other costs: e. Applied overhead at a rate equal to 137 percent of direct labor cost. f. Completed jobs costing $262,550. g. Sold jobs costing $324,670. h. Recorded sales revenue (on account) of $502,000. Required: 1. \& 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. 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. Prepare Lamonda's cost of goods manufactured report for April. Note: Round your answers to 2 decimal places. Lamonda Corporation 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 $233,170. b. Requisitioned materials at a cost of $111,700, of which $16,800 was for general factory use. c. Recorded unpaid factory labor of $224,700, of which $43,375 was indirect. d. Incurred other costs: e. Applied overhead at a rate equal to 137 percent of direct labor cost. f. Completed jobs costing $262,550. g. Sold jobs costing $324,670. h. Recorded sales revenue (on account) of $502,000. Required: 1. \& 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. 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. Prepare Lamonda's cost of goods manufactured report for April. Note: Round your answers to 2 decimal places

Answer & Explanation Solved by verified expert

See Answer