Question

Please show the explanations of how you've obtained the answers.
Required information [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $26,000; factory rent, $40,000; factory utilities, $20,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct $ 30,000 $ 43,000 materials Direct 19,000 20,000 labor Applied overhea Costs during April Direct 10,000 9,500 136,000 210,000 $110,000 materials Direct 104,000 150,000 105,000 labor Applied overhead Finished Finished Status on In April 30 (sold) (unsold) process

Answer 1

1
	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	30000	43000		73000
Direct Labor	20000	19000		39000
Applied overhead	10000	9500		19500
Beginning goods in process	60000	71500	0	131500
For April
Direct Materials	136000	210000	110000	456000
Direct Labor	104000	150000	105000	359000
Applied overhead	52000	75000	52500	179500
Total costs added in April	292000	435000	267500	994500
Total costs (April 30)	352000	506500	267500	1126000
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods inventory	Goods in process inventory
2
		Debit	Credit
1	Raw materials inventory	580000
	Accounts Payable		580000
2	Work in Process inventory	456000
	Raw materials inventory		456000
3	Work in Process inventory	359000
	Cash		359000
4	Factory overhead	26000
	Cash		26000
5	Work in Process inventory	179500
	Factory overhead		179500
6	Factory overhead	57000
	Raw materials inventory		57000
7	Factory overhead	20000
	Cash		20000
8	Factory overhead	58000
	Accumulated depreciation -factory equipment		58000
9	Factory overhead	40000
	Cash		40000
10	Finished goods inventory	858500		=352000+506500
	Work in Process inventory		858500
11	Cost of goods sold	352000
	Finished goods inventory		352000
12	Cash	665000
	Sales		665000
13	Cost of goods sold	21500
	Factory overhead		21500
3
Schedule of cost of goods manufactured
For month ended April 30
Direct materials used	456000
Direct labor used	359000
Factory overhead applied	179500
Total manufacturing costs	994500
Add: Work in Process, March 31	131500
Total cost of work in Process	1126000
Less: Work in Process, April 30	267500
Cost of goods manufactured	858500
4A
Gross Profit	291500
4B
Inventories
Raw materials	150000	=83000+580000-456000-57000
Work in Process	267500
Finished goods	506500
Total inventories	924000
Workings:
Actual factory overhead:
Indirect materials	57000
Indirect labor	26000
Factory rent	40000
Factory utilities	20000
Factory depreciation equipment	58000
Actual factory overhead	201000
Applied overhead	179500
Underapplied overhead	21500
Sales	665000
Less: Cost of goods sold	352000
Less: Underapplied overhead	21500
Gross Profit	291500