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Problem 19-1A: Production costs computed and recor...

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Problem 19-1A: Production costs computed and recorded; reports prepared L.O. C3, P1, P2, P3, P4 Lemmon Co.'s March 31 inventory of raw materials is $170,000. Raw materials purchases in April are $310,000, and factory payroll cost in April is $224,000. Overhead costs incurred in April are: indirect materials, $25,000; indirect labor, $19,000; factory rent, $25,000; factory utilities, $13,000; and factory equipment depreciation, $41,000. The predetermined overhead rate is 65% of direct labor cost. Job 306 is sold for $400,000 cash in April. Costs of the three jobs worked on in April follow. Balances on March 31 Job 306 Job 307 Job 308 Direct materials $9,000 $17,000 Direct labor 19,000 $5,000 Applied overhead 12,350 3,250 Costs during April Direct materials 75,000 160,000 65,000 Direct labor 31,000 74,000 100,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Required: 1.Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response. )306 307 308 Prepare journal entries for the month of April to record the following. (Omit the "$" sign in your response.) (a)Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.) General Journal Debit Credit (b)Assignment of direct materials, direct labor, and applied overhead costs to the Goods in Process Inventory. General Journal Debit Credit (c)Transfer of Jobs 306 and 307 to the Finished Goods Inventory. General Journal Debit Credit (d)Cost of goods sold for Job 306. General Journal Debit Credit (e)Revenue from the sale of Job 306. General Journal Debit Credit (f)Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) General Journal Debit Credit 3.Prepare a manufacturing statement for April (use a single line presentation for direct materials and show the details of overhead cost.) (Amounts in parentheses do not require a minus sign in front of them. Omit the "$" sign in your response.) LEMMON COMPANY Manufacturing Statement For Month Ended April 30 Factory overhead $ Total manufacturing costs Total cost of goods in process Cost of goods manufactured (306 & 307) 4.Compute gross profit for April. (Omit the "$" sign in your response.) Gross profit Show how to present the inventories on the April 30 balance sheet. (Omit the "$" sign in your response.) Inventories Raw materials $ Goods in process (Job 308) $ Finished goods (Job 307) $ Total inventories $

 

Paper#9132 | Written in 18-Jul-2015

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