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Principles of Managerial Accounting Bonus Problem

Baker Due: September $27,2024$

Version $11$

Detroit Lions Merchandise Corporation manufactures footballs and football safety pads for the

best team in the NFL and they use a job order cost system. On April $1,$ the accounts had balances

as shown below:

Balance, April $1$

Raw Materials Inventory $$16,700$

Work in Process Inventory $$20,900$

Finished Goods Inventory $$19,400$

The following transactions occurred during April:

a$.$ Purchased materials on account at a cost of $$34,870$ on credit

b$.$ Requisitioned materials at a cost of $$12,980,$ of which $30\%$ was for general factory use.

c$.$ Recorded unpaid factory labor of $$32,630,$ of which $$13,102$ was indirect.

d$.$ Incurred other costs:

e$.$ Applied overhead at a rate equal to $275\%$ of direct labor cost.

f$.$ Completed jobs costing $$46,460.$

g$.$ Sold jobs costing $$42,260.$

h$.$ Recorded sales revenue $($on account$)$ of $$101,500.$

Requirements

Post the April transactions to the T$-$accounts

Compute the balance in the accounts at the end of April.

Close out the over$/$under applied manufacturing overhead for the period

Prepare Detroit Lions Manufacturing Corp.$\text{'}$s cost of goods manufactured report for April.

Prepare Detroit Lions Manufacturing Corp.$\text{'}$s April income statement that includes adjusted

COGS, gross profit and net income for the period.

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