Question

Sed GLO201 - Based on Problem 02-1A Marcelino Company LO C2, P1, P2, P3, P4 Marcelino Co's March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500.000, and factory payroll cost in Aprilis $363.000. Overhead costs incurred in April are indirect materials, $50,000 indirect labor $23.000, factory rent $32,000, factory utilities. $19,000, and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow Job 3 Job 37 Job 308 Balances on March 31 Direct saterials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 $ 29,000 20.00 10.00 $ 35,000 18.00 9,000 135,00 65.000 220,000 150.00 Finished $100,00 105. (sold) Finished (unsolas In process Complete this question by entering your answers in the tabs below. Requirement Prepare journal entries for the month of April's transactions Ledger Trial Balance Job Coats View transactions Gross Profit Journal entry worksheet the purchase of mat (on credit) One

Answer 1

	Journal entry to record the purchase of inventory in credit.
	Date	Account titles and explanation	Debit	Credit
	30-Apr	Raw material inventory	$500,000
		To, Account payable		$500,000
		(to record purchase of inventory in credit)
	Logic:	Raw materials are current assets and by purchasing it current asset increases hence it is debited.
		Account paybles are liabilities, hence it is credited.