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 $233,270.
(b) Requisitioned materials at a cost of $111,800, of which $15,200 was for general factory use.
(c) Recorded factory labor of $225,300, of which $43,775 was indirect.
(d) Incurred other costs:

Selling expense $ 35,000
Factory utilities 22,900
Administrative expenses 51,050
Factory rent 11,900
Factory depreciation 19,200

(e) Applied overhead at a rate equal to 135 percent of direct labor cost.
(f) Completed jobs costing $263,450.
(g) Sold jobs costing $323,070.
(h) Recorded sales revenue of $514,000.

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.)

Raw Materials Inventory					Work in Process Inventory
Beg. Bal.	29,500.00				Beg. Bal.	19,000.00
End. Bal.	29,500.00
					End. Bal.	19,000.00
Finished Goods Inventory					Manufacturing Overhead
Beg. Bal.	124,200.00				Beg. Bal.
End. Bal.	124,200.00
					End. Bal.		0.00
Cost of Goods Sold					Sales Revenue
Beg. Bal.					Beg. Bal.
End. Bal.	0.00				End. Bal.		0.00
Selling and Administrative Expenses
Beg. Bal.
End. Bal.	0.00

3-a. Compute over- or underapplied manufacturing overhead. (Round your answer to 2 decimal places.)

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?
a.Decrease

b.Increase

4. Prepare Lamonda’s cost of goods manufactured report for April. (Round your answers to 2 decimal places.)

LAMONDA CORP.
Cost of Goods Manufactured Report
For the Month of April
Direct Materials Used
Total Current Manufacturing Costs	$0.00
Cost of Goods Manufactured

5. Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Round your answers to 2 decimal places.)

LAMONDA CORP.
Income Statement
For the Month of April
Cost of Goods Sold
Unadjusted Cost of Goods Sold
Adjusted Cost of Goods Sold
Net Income (Loss) from Operations