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 $510,000, and factory payroll cost in April is $381,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $25,000; factory rent, $37,000; factory utilities, $24,000; and factory equipment depreciation, $54,000. 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 $ 30,000 $ 40,000 Direct labor 21,000 17,000 Applied overhead 10,500 8,500 Costs during April Direct materials 134,000 220,000 $100,000 Direct labor 104,000 152,000 100,000 Applied overhead 2 Pinished Pinished Status on April 30 (sold) (unsold) process In Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). Job 306 Job 307 Job 308 April Total From March Prey N 3 4 of 5 !!! Next >

Answer 1

1)			Job 306	Job 307	Job 308	April
From March
Direct materials			30,000	40,000	0	70,000
Direct labor			21,000	17,000	0	38,000
applied overhead			10,500	8,500	0	19,000
Beginning goods in process			61,500	65,500	0	127,000
For April
Direct materials			134,000	220,000	100,000	454,000
Direct labor			104,000	152,000	100,000	356,000
applied overhead			52000	76000	50000	178,000
Total costs added in April			290,000	448,000	250,000	988,000
total costs (April 30)			351,500	513,500	250,000	1,115,000
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				510,000
		Accounts payable					510,000
	b.	Work in process inventory				454,000
		Raw materials inventory					454,000
	c.	Work in process inventory				356,000
		Cash					356,000
	d.	Factory overhead				25,000
		cash					25,000
	e.	Work in process inventory				178,000
		Factory overhead					178,000
	f.	Factory overhead				173,000
		Raw materials inventory					58,000
		Cash					61,000
		Accumulated Depreciation					54,000
	g.	finished goods inventory				865,000
		Work in process inventory					865,000
	h.	Cost of goods sold				351,500
		finished goods inventory					351,500
	i.	Cash				635,000
		sales					635,000
	j.	cost of goods sold				20,000
		Factory overhead					20,000
3)		Schedule of goods of goods manufactured
		direct materials used					454,000
		Direct labor used					356,000
		factory overhead applied					178,000
		total manufacturing costs					988,000
		Add:work in process March 31					127,000
		total cost of work in process					1,115,000
		less:work in process April 30					250,000
		cost of goods manufactured					865,000
4)		Gross profit
		sales				635,000
		less cost of goods sold				371,500
		Gross profit				263,500
5)		inventories
		Raw materials				83,000
		work in process				250,000
		finished goods				513,500
		total inventories				846,500