Lamonda Corp. uses a job order cost system. On April 1, the accounts had balance
ID: 2330275 • Letter: L
Question
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 $232,070 (b) Requisitioned materials at a cost of $110,400, of which $15,600 was for general factory use (c) Recorded factory labor of $225,100, of which $42,675 was indirect. (d) Incurred other costs Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $35,700 23,900 51,150 11,100 19,500 (e) Applied overhead at a rate equal to 142 percent of direct labor cost. () Completed jobs costing $263,450 (g) Sold jobs costing $324,570 (h) Recorded sales revenue of $505,000 Required 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.)Explanation / Answer
(1 & 2)
Raw Material Inventory :-
Beg Bal
28100
110400
(b)
(a)
232070
End Bal.
149770
Work in Process Inventory :-
Beg Bal
19900
263450
(f)
(b)
94800
(c)
182425
(e)
259044*
End Bal.
292719
*(225100 – 42675) * 142% = 259044
Finished Goods Inventory :-
Beg Bal
124200
324570
(g)
(f)
263450
End Bal.
63080
Manufacturing O/H :-
(b)
15600
259044
(e)
(c)
42675
(d)
23900
(d)
11100
(d)
19500
End Bal.
146269
Cost of Goods Sold :-
(g)
324570
End Bal.
324570
Sales Revenue :-
505000
(h)
End Bal.
505000
Selling & Admn Exp :-
(d)
35700
(d)
51150
End Bal.
86850
(3) Compute Over or Under applied of O/H :-
Manufacturing O/H Over applied = $146269
(4) Cost of Goods Manufactured Report :-
Beginning Raw Materials Inventory
28100
(+) Raw Material purchase
232070
(-) Indirect materials
15600
(-) Ending Raw Materials Inventory
149770
Direct Material used
94800
Direct Labour
182425
Manufactured O/H Applied
259044
Total Current manufacturing cost
536269
(+) Beginning WIP Inventory
19900
(-) Ending WIP Inventory
292719
Cost of Goods Manufactured
263450
(5) Income Statement :-
Sales Revenue
505000
Cost of goods sold
Beginning FG inventory
124200
(+) Cost of goods manufactured
263450
(-) Ending FG inventory
63080
Unadjusted cost of goods sold
324570
(-) Overapplied Mfr O/H
146269
178303
Gross Profit
326697
Selling & Admn Exp
86850
Net Income(Loss) from operation
239847
Beg Bal
28100
110400
(b)
(a)
232070
End Bal.
149770
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