Question

Return to ques Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $29,000; factory rent, $40,000; factory utilities, $22,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 31,000 24,000 12,000 $ 38,000 15,000 7,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 215,000 154,000 $105,000 101,000 132,000 102,000 ? Finished (sold) Finished (unsold) process < Prev 5 6 7 of 7 !! Next >

Answer 1

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	General Journal	Debit	Credit
1	Raw materials inventory	590000
	Accounts Payable		590000
2	Work in Process inventory	452000
	Raw materials inventory		452000
3	Work in Process inventory	357000
	Cash		357000
4	Factory overhead	29000
	Cash		29000
5	Work in Process inventory	178500
	Factory overhead		178500
6	Factory overhead	58000
	Raw materials inventory		58000
7	Factory overhead	22000
	Cash		22000
8	Factory overhead	55000
	Accumulated depreciation -factory equipment		55000
9	Factory overhead	40000
	Cash		40000
10	Finished goods inventory	858500
	Work in Process inventory		858500
11	Cost of goods sold	352000
	Finished goods inventory		352000
12	Cash	655000
	Sales		655000
13	Cost of goods sold	25500
	Factory overhead		25500
Workings:
From March
Direct Materials	31000	38000		69000
Direct Labor	24000	15000		39000
Applied overhead	12000	7500		19500
Beginning goods in process	67000	60500	0	127500
For April
Direct Materials	132000	215000	105000	452000
Direct Labor	102000	154000	101000	357000
Applied overhead	51000	77000	50500	178500
Total costs added in April	285000	446000	256500	987500
Total costs (April 30)	352000	506500	256500	1115000
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
	Actual factory overhead:
	Indirect materials	58000
	Indirect labor	29000
	Factory rent	40000
	Factory utilities	22000
	Factory depreciation equipment	55000
	Actual factory overhead	204000
	Applied overhead	178500
	Underapplied overhead	25500