Question

Required information The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $85.000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $383,000. Overhead costs incurred in Aprilare: indirect materials, $59,000; indirect labor $24,000; factory rent, $31,000; factory utilities, $21,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 30,000 23,000 11,500 $ 44,000 18,000 9,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 210,000 153,000 $ 105,000 103,000 132,000 103,000 7 Pinished (sold) Finished (unsold) process

Answer 1

	306	307	308	total
Balances on March 31
Direct materials	$            30,000	$                                   44,000		$        74,000
Direct labor	$            23,000	$                                   18,000		$        41,000
Applied overhead	$            11,500	$                                      9,000		$        20,500
Beginning goods in process	$            64,500	$                                   71,000	$                                       -	$     135,500
For April
Direct materials	$          132,000	$                                 210,000	$                           105,000	$     447,000
Direct labor	$          103,000	$                                 153,000	$                           103,000	$     359,000
Applied overhead(50%*dl)	$            51,500	$                                   76,500	$                             51,500	$     179,500
total costs added in april	$          286,500	$                                 439,500	$                           259,500	$     985,500
total costs-apr 30	$          351,000	$                                 510,500	$                           259,500	$ 1,121,000
status	finished(sold)	finished(unsold)	In Process
april 30 costs included in	COGS	finished goods inventory	WIP inventory

No.	Accounts	debit	credit
a	Raw material inventory	$        570,000
	accounts payable		$        570,000
b	Work in process inventory	$        447,000
	raw materials inventory		$        447,000
c	Work in process inventory	$        359,000
	cash		$        359,000
d	Factory overhead	$          24,000
	cash		$          24,000
e	Work in process inventory	$        179,500
	Factory overhead		$        179,500
f(1)	Factory overhead	$          59,000
	Raw materials inventory		$          59,000
f(2)	Factory overhead	$          21,000
	cash		$          21,000
f(3)	Factory overhead	$          55,000
	Accumulated depreciation-factory equipment		$          55,000
f(4)	Factory overhead	$          31,000
	cash		$          31,000
g	Finished goods inventory	$        861,500
	Work in process inventory		$        861,500
	(351000+510500)
h	Cost of goods sold	$        351,000
	finished goods inventory		$        351,000
i	Cash	$        660,000
	sales		$        660,000
j	Cost of goods sold	$          12,500
	factory overhead		$          12,500

Overhead applied to jobs		$                                 179,500
Overhead incurred
Indirect materials	$            59,000
Indirect labor	$            24,000
Factory rent	$            31,000
Factory utilities	$            21,000
Factory equip. depreciation.	$            55,000	$                                 190,000
Underapplied overhead		$                                   12,500
Ques 3
Marcelino company
Schedule of cost of goods manufactured
For the month ended april 30
Direct materials used	447,000
direct labor used	359,000
factory overhead applied	179,500
total manufacturing costs	985,500
Add:work in process march 31	135,500
total cost of work in process	1,121,000
less:work in process april 30	259,500
cost of goods manufactured	861,500
Ques 4
Sales	$          660,000
Less:cost of goods sold	$        (363,500)	12500+351000
Gross Profit	$          296,500
Gross Profit%	45%