Question

Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balances: Raw Materials Inventory $ 25,000 Work in Process Inventory 55,000 Finished Goods Inventory 60,000 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 general factory use. (c) Recorded factory labor of $155,000, of which $24,000 was indirect. (d) Incurred other costs: (Hint: Use Miscellaneous Accounts for the total of all costs incurred). Selling expense $ 44,000 Factory utilities 26,000 Administrative expenses 15,000 Factory rent 30,000 Factory depreciation 24,000 (e) Applied overhead at a rate equal to 135 percent of direct labor cost. (f) Completed jobs costing $375,000. (g) Sold jobs costing $402,000. (h) Recorded sales revenue of $500,000.

Answer 1

Answer:

To record purchase of Material

Dr. Raw Material Inventory $136,000  

Cr. Account Payable         $136,000  

To record Work in process Inventory  

Dr. Work in process Inventory $94,000  

Dr. Manufacturing Overhead $28,000  

Cr. Raw Material Inventory         $122,000  

To record wages payable

Dr. Work in process Inventory $131,000  

Dr. Manufacturing Overhead $24,000  

Cr. Wages Payable                 $155,000  

To record the cost

Dr. Selling and distribution Expenses $59,000  

Dr. Manufacturing Overhead                 $80,000  

Cr. Miscellaneous Expenses                 $139,000  

To record manufacturing overhead

Dr. Work in process Inventory $176,850  

Cr. Manufacturing Overhead $176,850  

To record Finished goods inventory

Dr. Finished goods inventory $375,000  

Cr. Work in process Inventory $375,000  

To record cost of goods Sold

Dr. Cost of Goods Sold         $402,000  

Cr. Finished goods inventory $402,000  

To record Sales revenue

Dr. Accounts Receivables $500,000  

Cr. Sales                         $500,000  

Explanation:

All the entries are recorded as per their events.