Question

Required Information The following information applies to the questions displayed below Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw msterials purchases in April are $570,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor. $22,000 factory rent, $37,000, factory utilities, $23,000 and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $690,000 cash in April. Costs of the three jobs worked on in April follow Job 306 5 29.000 11, 500 135,000 Job 307 Job 308 40.000 7,500 210,000 Coata dusing Ap i1 115.000 104.000 101,000 153.000 Appiied orazhaad Finiahad Finahad In statua on p-ii 3(unao14) procaaa 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhesd), and the total cost assigned to each job (including the balances from March 31). Job 30s Job 307 Job 303 April Total From March Direct Materlala Direct Labor Appliled overnead 29.000 23,000 11,500 40.000 15,000 7,500 5 69,000 33.000 19,000 Eeginning goods In process For April Direct Materlala 135.000 210,000 115,000 460,000 Direct Labor 101,000 153,000 104.000 358.000 Appliled overnead Total costs added in Aprll Total costs (Aprll 30) Status on Aprill 30 Aprill 30 cost Incluced i 236.000 363.000 219,000 318,000 Finlshed (Eold) Finlahed (unsold) in process

Answer 1

1)			Job 306	Job 307	Job 308	April
From March
Direct materials			29,000	40,000	0	69,000
Direct labor			23,000	15,000	0	38,000
applied overhead			11,500	7,500	0	19,000
Beginning goods in process			63,500	62,500	0	126,000
For April
Direct materials			135,000	210,000	115,000	460,000
Direct labor			101,000	153,000	104,000	358,000
applied overhead			50500	76500	52000	179,000
Total costs added in April			286,500	439,500	271,000	997,000
total costs (April 30)			350,000	502,000	271,000	1,123,000
Satus on april 30			fin(sold)	fin(unsold)	in process
April costs included in :			COGS	finished	WIP
				goods
2)	TR	General journal				Debit	Credit
	a.	Raw materials inventory				570,000
		Accounts payable					570,000
	b.	Work in process inventory				460,000
		Raw materials inventory					460,000
	c.	Work in process inventory				358,000
		Cash					358,000
	d.	Factory overhead				22,000
		cash					22,000
	e.	Factory overhead				179,000
		work in process inventory					179,000
	f.	Factory overhead				164,000
		Raw materials inventory					51,000
		Cash					60,000
		Accumulated Depreciation					53,000
	g.	finished goods inventory				852,000
		Work in process inventory					852,000
	h.	Cost of goods sold				350,000
		finished goods inventory					350,000
	i.	Cash				690,000
		sales					690,000
	j.	cost of goods sold				7,000
		Factory overhead					7,000
3)		Schedule of goods of goods manufactured
		direct materials used					460,000
		Direct labor used					358,000
		factory overhead applied					179,000
		total manufacturing costs					997,000
		Add:work in process March 31					126,000
		total cost of work in process					1,123,000
		less:work in process April 30					271,000
		cost of goods manufactured					852,000
4)		Gross profit
		sales				690,000
		less cost of goods sold				357,000
		Gross profit				333,000
5)		inventories
		Raw materials				149,000
		work in process				271,000
		finished goods				502,000
		total inventories				922,000
	Working notes
		Actual overhead
		indirect material			51,000
		indirect labor			22,000
		depreciation			53,000
		Factory rent			37,000
		factory utilities			23,000
		total			186,000
		overhead applied			179,000
		under applied overhead			7,000
		Raw materials inventory
		beginning raw materials			90,000
		purchased			570,000
		direct materials used			-460,000
		indirect materials used			-51,000
		ending raw materials inventory			149,000