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Marcelino Co.'s March 31 inventory of raw materials is $85,000. 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, $59,000; indirect labor, $28,000; factory rent, $33,000; factory utilities, $21,000; and factory equipment depreciation, $52,000. 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 306				Job 307				Job 308
Balances on March 31
Direct materials		$	26,000			$	40,000
Direct labor			22,000				15,000
Applied overhead			11,000				7,500
Costs during April
Direct materials			132,000				215,000			$	110,000
Direct labor			102,000				153,000				102,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

rev: 03_14_2018_QC_CS-121813

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2. Prepare journal entries for the month of April to record the above transactions.

Answer 1

			Job 306	Job 307	Job 308	April
1)						total
From March
Direct materials			26,000	40,000	0	66,000
Direct labor			22,000	15,000	0	37,000
applied overhead			11,000	7,500	0	18,500
Beginning goods in process			59,000	62,500	0	121,500
For April
Direct materials			132,000	215,000	110,000	457,000
Direct labor			102,000	153,000	102,000	357,000
applied overhead			51000	76500	51000	178,500
Total costs added in April			285,000	444,500	263,000	992,500
total costs (April 30)			344,000	507,000	263,000	1,114,000
Satus on april 30			fin(sold)	fin(unsold)	in process
April costs included in :			COGS	finished	WIP
				goods
				inventory
2)	TR	General journal				Debit	Credit
	a.	Raw materials inventory				580,000
		Accounts payable					580,000
	b.	Work in process inventory				457,000
		Raw materials inventory					457,000
	c.	Work in process inventory				357,000
		Cash					357,000
	d.	Factory overhead				28,000
		cash					28,000
	e.	Factory overhead				178,500
		work in process inventory					178,500
	f.	Factory overhead				165,000
		Raw materials inventory					59,000
		Cash					54,000
		Accumulated Depreciation					52,000
	g.	finished goods inventory				851,000
		Work in process inventory					851,000
	h.	Cost of goods sold				344,000
		finished goods inventory					344,000
	i.	Cash				635,000
		sales					635,000
	j.	cost of goods sold				14,500
		Factory overhead					14,500