Question

Marcelino LOS Marcn si inventory of raw matenais is U.UUU. Raw materiais purchases in Aprare uovu, ana factory payroll cost in April is $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 306 Job 307 Job 388 Balances on March $ 35,000 18,000 9,000 -Book Direct materials $ 29,000 Direct labor 20,800 Applied 10,000 overhead Costs during April Direct 135,000 materials Direct labor 85,000 Applied overhead Status on April Finished (sold) 220,000 150,000 $100,000 105,000 Print Finished (unsold) In process Complete this question by entering your answers in the tabs below. G Job Costs Ma ross Profit General Ledger Trial Balance General Journal Requirement Prepare journal entries for the month of April's transactions View transaction list

Answer 1

General Journal:

Date	Account Titles and Explanation	Debit	Credit
Apr. 1	Raw Materials Inventory	$500,000
	Cash		$500,000
	(To record the purchase of raw materials by cash)
Apr. 1	Factory Payroll	$363,000
	Cash		$363,000
	(To record the payment of factory payroll)
Apr. 1	Indirect materials	$50,000
	Indirect labor	$23,000
	Factory Rent	$32,000
	Factory Utilities	$19,000
	Cash		$124,000
	(To record the payment of factory overheads)
Apr. 1	Depreciation Expense - Factory Equipment	$51,000
	Accumulated Depreciation		$51,000
	(To record the depreciation on factory equipment)
April	Work-in Process Inventory	$965,000
	Direct Materials ($135,000 + $220,000 + $100,000)		$455,000
	Direct labor ($85,000 + $150,000 + $105,000)		$340,000
	Overheads ($340,000*50/100)		$170,000
	(To record the transfer of costs to WIP)
April	Cash	$635,000
	Sales Revenue		$635,000
	(To record the cash sales)
April	Cost of Goods Sold	$262,500
	Finished Goods Inventory ($135,000 + $85,000 + [$85,000*50/100])		$262,500
	(To record the cost of goods sold)