Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balance.
Raw materials inventory $29,500
Work in process inventory 19,800
Finished goods inventory 123,300
The following transactions occurred during April.
(a) Purchased materials on account, $232,370.
(b) Requisitioned materials, $111,000, of which $15,500 was for general factory use.
(c) Recorded factory labor of $224,500, of which $42,275 was indirect.
(d) Incurred other costs:
Selling expense $34,900
Factory utilities 24,300
Administrative expenses 50,750
Factory rent 10,200
Factory depreciation 19,900
(e) Applied overhead during the month totaling $133,760.
(f) Completed jobs costing $263,650.
(g) Sold jobs costing $323,370.
(h) Recorded sales revenue of $511,000.
1 & 2 Post the April transaction to the T-accounts and compute the balance in the accounts at the end of April.
3 Compute over- or under applied manufacturing overhead.
4 Prepare Lamonda\’s cost of goods manufactured report for April
5 Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or under applied manufacturing overhead.
Click here for the SOLUTION