Question

Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $367,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $29,000; factory rent, $35,000; factory utilities, $24,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow.

(Can you please also show me step-by-step how to compute beginning goods in process for Job 308?)

a.	Materials purchases (on credit).
b.	Direct materials used in production.
c.	Direct labor paid and assigned to Work in Process Inventory.
d.	Indirect labor paid and assigned to Factory Overhead.
e.	Overhead costs applied to Work in Process Inventory.
f.	Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
g.	Transfer of Jobs 306 and 307 to Finished Goods Inventory.
h.	Cost of goods sold for Job 306.
i.	Revenue from the sale of Job 306.
j.	Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

Answer 1

			Job 306	Job 307	Job 308	April
1)						total
From March
Direct materials			28,000	45,000	0	73,000
Direct labor			24,000	16,000	0	40,000
applied overhead			12,000	8,000	0	20,000
Beginning goods in process			64,000	69,000	0	133,000
For April
Direct materials			139,000	205,000	115,000	459,000
Direct labor			104,000	151,000	104,000	359,000
applied overhead			52000	75500	52000	179,500
Total costs added in April			295,000	431,500	271,000	997,500
total costs (April 30)			359,000	500,500	271,000	1,130,500
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				600,000
		Accounts payable					600,000
	b.	Work in process inventory				459,000
		Raw materials inventory					459,000
	c.	Work in process inventory				359,000
		Cash					359,000
	d.	Factory overhead				29,000
		cash					29,000
	e.	Factory overhead				179,500
		work in process inventory					179,500
	f.	Factory overhead				170,000
		Raw materials inventory					56,000
		Cash					59,000
		Accumulated Depreciation					55,000
	g.	finished goods inventory				859,500
		Work in process inventory					859,500
	h.	Cost of goods sold				359,000
		finished goods inventory					359,000
	i.	Cash				680,000
		sales					680,000
	j.	cost of goods sold				19,500
		Factory overhead					19,500
3)		Schedule of goods of goods manufactured
		direct materials used					459,000
		Direct labor used					359,000
		factory overhead applied					179,500
		total manufacturing costs					997,500
		Add:work in process March 31					133,000
		total cost of work in process					1,130,500
		less:work in process April 30					271,000
		cost of goods manufactured					859,500
4)		Gross profit
		sales				680,000
		less cost of goods sold				378,500
		Gross profit				301,500
5)		inventories
		Raw materials				170,000
		work in process				271,000
		finished goods				500,500
		total inventories				941,500