Question

Check my work ܠܢ 1 Part 25 Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 The following information applies to the questions displayed below) Marcelino Co's March 31 invertory of raw materials is $82.000 Raw materials purchases in April are $590.000 and factory payroll cost in April is $382.000. Overhead costs incurred in Apr are indirect materials, $55.000 indirect labor, S27000: factory rent. $35.000 factory utlities. $24.000, and factory equipment depreciation. 553.000 The predetermined overhead rate is 50% of direct labor cost. Job 306 sold for $640,000 cash in April. Costs of the three jobs worked on in Arifollow Job 396 Job 347 3ob308 Balances on March 31 Direct materials $ 31,000 $ 44,010 Direct labor 21.000 13.00 Applied overhead 10,500 Costs during April Direct materials 131, ce 215, $120,00 Direct labor 101,000 150,00 104,100 Applied overhead Status on April 30 Finished sold) Cunsold process Vinished Problem 15-1A Part 1 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 7 Job 305 April Total Em Prev 1 2 3 4 of Next >

Answer 1

Solution 1:
Computation of production cost incurred in april and total cost assigned to each job
Particulars	Job 306	Job 307	Job 308	Total
From March:
Direct material	$31,000.00	$44,000.00	$0.00	$75,000.00
Direct labor	$21,000.00	$13,000.00	$0.00	$34,000.00
Applied overhead (50% of direct labor)	$10,500.00	$6,500.00	$0.00	$17,000.00
Beginning Goods in Process	$62,500.00	$63,500.00	$0.00	$126,000.00
For April:
Direct material	$131,000.00	$215,000.00	$120,000.00	$466,000.00
Direct labor	$101,000.00	$150,000.00	$104,000.00	$355,000.00
Applied overhead (50% of direct labor)	$50,500.00	$75,000.00	$52,000.00	$177,500.00
Total Cost added in April	$282,500.00	$440,000.00	$276,000.00	$998,500.00
Total Costs (April 30)	$345,000.00	$503,500.00	$276,000.00	$1,124,500.00
Status on April 30	Finished (Sold)	Finished (Unsold)	In Process
April 30 cost included in	Cost of goods sold	Finished goods inventory	Work In Process Inventory

Solution 2:
Journal Entries - Marcelino Co
Event	Particulars	Debit	Credit
a	Raw material inventory Dr	$590,000.00
	To Accounts Payable		$590,000.00
	(To record purchase of raw material)
b	Work In Process Dr	$466,000.00
	To Raw material inventory		$466,000.00
	(To record raw material used in production)
c	Work In Process Dr	$355,000.00
	To Cash		$355,000.00
	(To record direct labor payment and assigment to production)
d	Factory overhead Dr	$27,000.00
	To Cash		$27,000.00
	(To record Indirect labor payment and assigment to factory overhead)
e	Work In Process Dr	$177,500.00
	To Factory Overhead		$177,500.00
	(To apply overhead to production)
f1	Factory Overhead Dr	$55,000.00
	To Raw material inventory		$55,000.00
	(To record indirect material used)
f2	Factory Overhead Dr	$35,000.00
	To Cash		$35,000.00
	(To record factory rent)
f3	Factory Overhead Dr	$24,000.00
	To Cash		$24,000.00
	(To record factory utilities)
f4	Factory Overhead Dr	$53,000.00
	To Accumulated Depreciation		$53,000.00
	(To record factory depreciation)
g	Finished goods inventory Dr	$848,500.00
	To Work In Process		$848,500.00
	(Being completed jobs transferred to finished goods)
h	Cost of goods sold Dr	$345,000.00
	To Finished goods inventory		$345,000.00
	(To record cost of goods sold for Job 306)
i	Cash Dr	$640,000.00
	To Sales Revenue		$640,000.00
	(To record sales of Job 306)
j	Cost of goods sold Dr	$16,500.00
	To Factory Overhead		$16,500.00
	(To close underapplied overhead to COGS)

Solution 3:
Marcelino company
Schedule of cost of goods manufactured
For the month ended April 30
Particulars	Amount
Direct material	$466,000.00
Direct labor	$355,000.00
Applied overhead (50% of DL Cost)	$177,500.00
Total manufacturing costs	$998,500.00
Add: Beginning WIP	$126,000.00
Total cost of work in process	$1,124,500.00
Less: Ending WIP	$276,000.00
Cost of goods manufactured	$848,500.00

Solution 4a: Adjusted cost of goods sold = Unadjusted cost of goods sold + Underapplied overhead = $345,000 + $16,500 = $361,500 Gross profit = Sales Revenue - Cost of goods sold =$640,000 - $361,500 = $278,500

Solution 4b:
Inventories - April 30
Particulars	Amount
Raw material inventory ($82,000 + $590,000 - $466,000 - $55,000)	$151,000.00
Work In Process Inventory	$276,000.00
Finished goods inventory	$503,500.00
Total	$930,500.00