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Edit View History Bookmarks People Window Help M McGraw-Hill Connect | ErrorPx Chapter connect.mheducation.com ×.DACC 2013 O ezto.mheducation.com/hm.tpx Bookmarks 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 Apnil (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 general factory use. (c) Recorded factory labor of $155,000, of which $24,000 was indirect. (d) Incurred other costs: $44,000 26,000 15,000 30,000 24.000 Selling expense Factory utilities Factory rent Factory depreciation (e) Applied overhead at a rate equal to 135 percent of direct labor cost () 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 April. Raw Materials Inventory Beg Bai 25,000 Beg. Bal 55,000 End. Bal. 25,000 End. Bal. 55,000 88F O F3 FS b-11 F6 98

Explanation / Answer

Solution 1&2:

Solution 3a:

Actual manufacturing overhead = $132,000

Overhead applied = $176,850

Overapplied overhead = $176,850 - $132,000 = $44,850

Solution 3b:

If balance of manufacturing overhead account is closed directly to cost of goods sold then cost of goods sold will decrease as overheads are overapplied.

Solution 4:

Solution 5:

Raw Material Inventory Particulars Debit Particulars Credit Beginning Balance $25,000.00 b $122,000.00 a $136,000.00 Ending balance $39,000.00

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