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Principles of Managerial Accounting Bonus Problem

Baker Due: September $27,2024$

Version $19$

Detroit Lions Merchandise Corporation manufactures footballs and football safety pads for the

best team in the NFL and they use a job order cost system. On April $1,$ the accounts had balances

as shown below:

Balance, April $1$

Raw Materials Inventory $$18,900$

Work in Process Inventory $$22,600$

Finished Goods Inventory $$19,200$

The following transactions occurred during April:

a$.$ Purchased materials on account at a cost of $$36,520$ on credit

b$.$ Requisitioned materials at a cost of $$14,100,$ of which $20\%$ was for general factory use.

c$.$ Recorded unpaid factory labor of $$36,190,$ of which $$13,280$ was indirect.

d$.$ Incurred other costs:

e$.$ Applied overhead at a rate equal to $250\%$ of direct labor cost.

f$.$ Completed jobs costing $$45,960.$

g$.$ Sold jobs costing $$47,230.$

h$.$ Recorded sales revenue $($on account$)$ of $$108,300.$

Requirements

Post the April transactions to the T$-$accounts

Compute the balance in the accounts at the end of April.

Close out the over$/$under applied manufacturing overhead for the period

Prepare Detroit Lions Manufacturing Corp.$\text{'}$s cost of goods manufactured report for April.

Prepare Detroit Lions Manufacturing Corp.$\text{'}$s April income statement that includes adjuste

COGS, gross profit and net income for the period.

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