Itdoesnthaveabeginningbalance solet sleaveitato Solution Ans

Itdoesn\'thaveabeginningbalance solet sleaveitato.

Solution

Answer 3-a Computation of over or under applied manufacturing overheads Applied manufacturing overheads = Direct labour cost * Overhead rate = [$111700 - $16800] * 140% = $1,32,860 Actual Manufacturing overheads incurred is as under, Indirect Material $16,800.00 Indirect Labour $43,375.00 Factory Utilities $23,200.00 Factory Rent $11,400.00 Factory Depreciation $20,600.00 Actual Manufacturing overheads incurred = $115,375.00 Overapplied manufacturing overheads = Applied overheads - Actual overheads incurred = $1,32,860 - $1,15,375 = $17,485 Answer 3-b If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, then the cost of goods sold would decrease. Answer 4 Lamonda Cost of goods manufactured report for April Direct Material $94,900.00 Direct Labour $180,825.00 Manufacturing Overheads applied $132,860.00 Cost of manufacturing for April $408,585.00 Less : Work In process ,April end $145,735.00 Cost of Goods Manufactured   $262,850.00 Answer 5 Lamonda Income Statement for the April Sales $507,000.00 Cost of goods sold $323,770.00 Less : Adj.for Overapplied overheads $17,485.00 Cost of goods sold (adjusted) $306,285.00 Gross Margin $200,715.00 Less : Non Manufacturing Costs Selling Expenses $34,300.00 Administrative Expenses $50,150.00 Total Operating Expenses $84,450.00 Operating Income $116,265.00