Question 17 (of 18) 0.64 points Lamonda Corp. uses a job order cost system. On A

Question

Question 17 (of 18) 0.64 points 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 $136,000 (b) Requisitioned materials at a cost of $122,000, of which $28,000 was for (c) Recorded factory labor of $155,000, of which $24,000 was indirect (d) Incurred other costs Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $44,000 26,000 15,000 30,000 24,000 (e) Applied overhead at a rate equal to 135 percent of direct labor cost (1) Completed jobs costing $375,000 (g) Sold jobs costing $402.000 (h) Recorded sales revenue of $500,000 Required: 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of Apri. Work in Process Inventory Raw Materials Inventory 0 Type here to search

Explanation / Answer

Part 1 and 2)

The T-Accounts are prepared as below:

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Part 3-a)

The answer is provided as below:

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Notes:

1) To understand the calculation, please refer to to T-Account for manufacturing overhead prepared in Part 1 and 2).

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Part 3-b)

If the balance in the manufacturing overhead account is directly closed to the cost of goods sold account, it will decrease the cost of goods sold.

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Part 4)

The cost of goods manufactured report is prepared as below:

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Part 5)

The income statement is given as follows:

Raw Materials Inventory Beg. Bal. 25,000 b) 122,000 a) 136,000 End. Bal. $39,000

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