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    Lambeth Custom Cabinets

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    Haider Ali
    1. The document provides accounting information for Lambeth Custom Cabinets for the month of September, including beginning balances, transactions during the month, and ending balances. 2. It shows raw materials, work in process, supplies, and other assets balances on the balance sheet. It also shows sales revenue, cost of goods sold, expenses and net income on the income statement. 3. Marginal analysis is performed for Mrs. Carter Cabinets showing contribution margin and net income using actual variable costs versus assuming direct labor is essentially fixed.

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    Lambeth Custom Cabinets

    Uploaded by

    Haider Ali
    196 views14 pages
    1. The document provides accounting information for Lambeth Custom Cabinets for the month of September, including beginning balances, transactions during the month, and ending balances. 2. It shows raw materials, work in process, supplies, and other assets balances on the balance sheet. It also shows sales revenue, cost of goods sold, expenses and net income on the income statement. 3. Marginal analysis is performed for Mrs. Carter Cabinets showing contribution margin and net income using actual variable costs versus assuming direct labor is essentially fixed.

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    Lambeth Custom Cabinets case study. complete report will all the descriptions.

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    1. The document provides accounting information for Lambeth Custom Cabinets for the month of September, including beginning balances, transactions during the month, and ending balances. 2. It shows raw materials, work in process, supplies, and other assets balances on the balance sheet. It also shows sales revenue, cost of goods sold, expenses and net income on the income statement. 3. Marginal analysis is performed for Mrs. Carter Cabinets showing contribution margin and net income using actual variable costs versus assuming direct labor is essentially fixed.

    Copyright:

    © All Rights Reserved
    Flag for inappropriate content
    196 views14 pages

    Lambeth Custom Cabinets

    Uploaded by

    Haider Ali
    1. The document provides accounting information for Lambeth Custom Cabinets for the month of September, including beginning balances, transactions during the month, and ending balances. 2. It shows raw materials, work in process, supplies, and other assets balances on the balance sheet. It also shows sales revenue, cost of goods sold, expenses and net income on the income statement. 3. Marginal analysis is performed for Mrs. Carter Cabinets showing contribution margin and net income using actual variable costs versus assuming direct labor is essentially fixed.

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    of 14

    Subject

    Managerial Accounting
    Submitted By

    Haider ali

    Program
    BBA
    1-Sep
    Raw-Mat $2,150
    Supplies Inv $620
    WIP $5,650
    Assets $16,890

    WIP Sep 1
    Job Materials Labor Overhead (50%of Labor)
    A-3 $750 $1,100 $550
    A-4 $900 $650 $325
    A-5 $325 $700 $350
    TOTAL $1,975 $2,450 $1,225

    Finish A-3, A-4 and A-6 (NOT A-5)

    During Sep
    Job Direct Materials Direct Labor Finish
    A-3 $280 $750 YES
    A-4 $350 $1,300 YES
    A-5 $180 $550 NO
    A-6 $375 $490 YES
    A-7 $590 $370 NO
    TOTAL $1,775 $3,460

    During Sep Material Used


    Raw-Mat $1,675
    Supplies $580 $490
    WIP $5,650
    Assets $16,890

    Total Labor $5,460


    Direct Labor $3,460
    Indirect Labor $2,000

    Mrs. Carter Cabinets Cost Price= $1900, $275 Profit, Other Company(Walworth) charge = $15
    Lumber $590
    Finishing Materials $75
    Direct- Labor Cost $640
    Overhead $320
    TOTAL $1,625
    Finish
    YES
    YES
    NO
    $5,650

    Collections
    $6,125
    $8,600

    $1,750

    $16,475

    pany(Walworth) charge = $1500


    Raw Materials Work in Process
    1-Sep 2150 280 A-3 1-Sep 5650 3805
    Direct Raw
    1. Purchases 1675 350 A-4 Material 1775 4175
    180 A-5 Direct Labor 3460 1110
    375 A-6 App OH 1730 9090
    590 A-7 12615
    Total 3825 1775
    Balance 9/30 $ 2,050 Balance 9/30 $ 3,525
    Note to B/S Note to B/S

    Manufacturing Overhead

    Supplies Inventory 2.Supplies 490 375

    1-Sep 620 490 2. To MOH 3. Indirect Labo 2000 650


    2. Purchases 580 275
    245
    Balance 9/30 $ 710 185
    1730
    760

    All other Assets


    Labor 1-Sep 16890 1675

    3.WIP 3460 750 A-3 5. Collections 16475 580


    3.MOH 2000 1300 A-4 5460

    550 A-5 33365 3420


    490 A-6 $ 22,230
    370 A-7
    2000 Indirect
    5460
    Finished Goods
    A-3 9090 9090 Transfer to COGS

    A-4 Balance 9/30 0


    A-6
    To Finished good

    Expense & Income Summary


    ng Overhead COGS 9090 16475 Sales

    A-3 Underapplied OH 760


    4. G& A
    A-4 expenses 3420
    A-5 13270
    A-6 3205 Net Income
    A-7
    Applied (50%)
    COGS

    9090 9090 transfer to Income summary


    1. Purchases RM
    2. Purchases
    Supplies
    3. Wages Paid
    4. G& A expenses
    paid
    Check Cell

    underapplied
    OH
    Lambeth Custom Cabinets
    Balance Sheet
    1-Sep Sep-31
    Assets
    Inventory
    Raw Materials 2150 2050
    Work in Process 5650 3525
    Supplies 620 710

    All other Assets 16890 22230


    Total Assets $25,310 $28,515

    Liabilities & Shareholders Equity


    Liabilities 0 0
    Shareholders Equity 25310 $28,515
    Total $ 25,310 $ 28,515

    Lambeth Custom Cabinets


    Income Statement
    Sales Revenue $16,475
    Less: Cost of Goods Sold
    Cost of Goods Manufactured 9090
    Plus: Underapplied Manufacturing Overhead 760 9850
    Gross Profit $6,625
    Less: General and Administrative Expenses 3420
    Income from Operations $3,205
    JOB SHEETS

    Job Number Materials Labor Overhead Total WIP


    1-Sep A-3 750 1100 550 2400
    Sep A-3 280 750 375 1405

    1-Sep A-4 900 650 325 1875


    Sep A-4 350 1300 650 2300

    1-Sep A-5 325 700 350 1375


    Sep A-5 180 550 275 1005

    Sep A-6 375 490 245 1110

    Sep A-7 590 370 185 1145

    1095 1620 810 3525


    Purchases/Labor/OH
    in Sept 1775 3460 1730
    See DM account. Transaction 3 50 % of Labor.
    Total Finished
    Goods Sep 30 WIP

    3805 0 Finished

    4175 0 Finished

    0 2380

    1110 0 Finished

    0 1145
    9090 3525
    Marginal Analysis Mrs Carter

    Sales $ 1,500

    Variable Costs
    Lumber $ 590
    Finishing
    Materials $ 75
    Direct
    Labor $ 640
    TVC $ (1,305)
    Contribution Margin $ 195
    Overhead $ (320.0)
    Net Income $ (125)

    Marginal Analysis What if Labor was Essentially Fixed?


    Sales $ 1,500

    Variable Costs
    Lumber $ 590
    Finishing
    Materials $ 75
    Direct
    Labor $ -
    TVC $ (665)
    Contribution Margin $ 835
    Overhead $ -
    Net Income $ 835
     

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