Question

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 inventory of raw materials is $85,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $29,000; factory rent, $30,000; factory utilities, $22,000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 $ 27,000 21.000 10.500 $ 42.000 17.000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 137,000 102,000 200,000 154,000 $105,000 100,000 Finished (sold) Finished (unsold) process Problem 15-1A Part 2 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. 1. Revenue from the sale of Job 306. J. Assignment of any underapplied or overapplied overhead to the Cost of Good Sold account. (The amount is not material.) 2. Prepare journal entries for the month of April to record the above transactions View transaction list Journal entry worksheet

Answer 1

			Job 306	Job 307	Job 308	April
1)						total
From March
Direct materials			27,000	42,000	0	69,000
Direct labor			21,000	17,000	0	38,000
applied overhead			10,500	8,500	0	19,000
Beginning goods in process			58,500	67,500	0	126,000
For April
Direct materials			137,000	200,000	105,000	442,000
Direct labor			102,000	154,000	100,000	356,000
applied overhead			51000	77000	50000	178,000
Total costs added in April			290,000	431,000	255,000	976,000
total costs (April 30)			348,500	498,500	255,000	1,102,000
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				560,000
		Accounts payable					560,000
	b.	Work in process inventory				442,000
		Raw materials inventory					442,000
	c.	Work in process inventory				356,000
		Cash					356,000
	d.	Factory overhead				29,000
		cash					29,000
	e.	Work in process inventory				178,000
		Factory overhead					178,000
	f.	Factory overhead				164,000
		Raw materials inventory					58,000
		Cash					52,000
		Accumulated Depreciation					54,000
	g.	finished goods inventory				847,000
		Work in process inventory					847,000
	h.	Cost of goods sold				348,500
		finished goods inventory					348,500
	i.	Cash				630,000
		sales					630,000
	j.	cost of goods sold				15,000
		Factory overhead					15,000