The following transactions occurred during April: a. Purchased materials on account at a cost of $232,970. b. Requisitioned materials at a cost of $111,900, of which $16,000 was for general factory use. c. Recorded unpaid factory labor of $223,800, of which $43,575 was indirect. d. Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $ 34,600 23,100 51,250 10,600 19,500 e. Applied overhead at a rate equal to 130 percent of direct labor cost. f. Completed jobs costing $263,150. g. Sold jobs costing $324,270. h. Recorded sales revenue (on account) of $506,000. Required: 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. 3-a. Compute over- or underapplied 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? 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 underapplied manufacturing overhead. Complete this question by entering your answers in the tabs below.
The following transactions occurred during April: a. Purchased materials on account at a cost of $232,970. b. Requisitioned materials at a cost of $111,900, of which $16,000 was for general factory use. c. Recorded unpaid factory labor of $223,800, of which $43,575 was indirect. d. Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $ 34,600 23,100 51,250 10,600 19,500 e. Applied overhead at a rate equal to 130 percent of direct labor cost. f. Completed jobs costing $263,150. g. Sold jobs costing $324,270. h. Recorded sales revenue (on account) of $506,000. Required: 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. 3-a. Compute over- or underapplied 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? 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 underapplied manufacturing overhead. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The following transactions occurred during April:
a. Purchased materials on account at a cost of $232,970.
b. Requisitioned materials at a cost of $111,900, of which $16,000 was for general factory use.
c. Recorded unpaid factory labor of $223,800, of which $43,575 was indirect.
d. Incurred other costs:
Selling expense
Factory utilities
Administrative expenses
Factory rent
Factory depreciation
e. Applied overhead at a rate equal to 130 percent of direct labor cost.
f. Completed jobs costing $263,150.
g. Sold jobs costing $324,270.
h. Recorded sales revenue (on account) of $506,000.
$ 34,600
23,100
51,250
10,600
19,500
Required:
1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April.
3-a. Compute over- or underapplied 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?
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
underapplied manufacturing overhead.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3a
Req 3b
Req 4
Req 5
Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April.
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