Solution:
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 | $29,000.00 | $35,000.00 | $0.00 | $64,000.00 |
Direct labor | $25,000.00 | $17,000.00 | $0.00 | $42,000.00 |
Applied overhead (50% of direct labor) | $12,500.00 | $8,500.00 | $0.00 | $21,000.00 |
Beginning Goods in Process | $66,500.00 | $60,500.00 | $0.00 | $1,27,000.00 |
For April: | ||||
Direct material | $1,35,000.00 | $2,20,000.00 | $1,05,000.00 | $4,60,000.00 |
Direct labor | $1,03,000.00 | $1,52,000.00 | $1,03,000.00 | $3,58,000.00 |
Applied overhead (50% of direct labor) | $51,500.00 | $76,000.00 | $51,500.00 | $1,79,000.00 |
Total Cost added in April | $2,89,500.00 | $4,48,000.00 | $2,59,500.00 | $9,97,000.00 |
Total Costs (April 30) | $3,56,000.00 | $5,08,500.00 | $2,59,500.00 | $11,24,000.00 |
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 |
Journal Entries - Marcelino Co | |||
Event | Particulars | Debit | Credit |
a | Raw material inventory Dr | $5,30,000.00 | |
To Accounts Payable | $5,30,000.00 | ||
(To record purchase of raw material) | |||
b | Work In Process Dr (135000+220000+105000) | $4,60,000.00 | |
To Raw material inventory | $4,60,000.00 | ||
(To record raw material used in production) | |||
c | Work In Process Dr (103000+152000+103000) | $3,58,000.00 | |
To Cash | $3,58,000.00 | ||
(To record direct labor payment and assigment to production) | |||
d | Factory overhead Dr | $30,000.00 | |
To Cash | $30,000.00 | ||
(To record Indirect labor payment and assigment to factory overhead) | |||
e | Work In Process Dr ($358000*50%) | $1,79,000.00 | |
To Factory Overhead | $1,79,000.00 | ||
(To apply overhead to production) | |||
f1 | Factory Overhead Dr | $54,000.00 | |
To Raw material inventory | $54,000.00 | ||
(To record indirect material used) | |||
f2 | Factory Overhead Dr | $31,000.00 | |
To Cash | $31,000.00 | ||
(To record factory rent) | |||
f3 | Factory Overhead Dr | $19,000.00 | |
To Cash | $19,000.00 | ||
(To record factory utilities) | |||
f4 | Factory Overhead Dr | $56,000.00 | |
To Accumulated Depreciation | $56,000.00 | ||
(To record factory depreciation) | |||
g | Finished goods inventory Dr (356000+508500) | $8,64,500.00 | |
To Work In Process | $8,64,500.00 | ||
(Being completed jobs transferred to finished goods) | |||
h | Cost of goods sold Dr | $3,56,000.00 | |
To Finished goods inventory | $3,56,000.00 | ||
(To record cost of goods sold for Job 306) | |||
i | Cash Dr | $6,30,000.00 | |
To Sales Revenue | $6,30,000.00 | ||
(To record sales of Job 306) | |||
j | Cost of goods sold Dr | $11,000.00 | |
To Factory Overhead ($190,000 - $179,000) | $11,000.00 | ||
(To close underapplied overhead to COGS) |
Required information The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory...
Required information [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $387,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $29,000; factory rent, $36,000; factory utilities, $19,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of...
Required Information The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $386.000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $27.000; factory rent, $35.000; factory utilities, $20,000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 cash in April. Costs of...
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 $580,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $28,000; factory rent, $33,000; factory utilities, $21,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of...
9 [The following information applies to the questions displayed below) Marcelino Co.'s March 31 inventory of raw materials is $86,000, Raw materials purchases in April are $520,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials $53,000; indirect labor, $21000; factory rent, $39,000; factory utilities, $22,000, and factory equipment depreciation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 cash in April. Costs of the...
Required information [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000, and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of...
Required information [The following information applies to the questions displayed below.] Marcelino Co.s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of...
Required information
[The following information applies to the questions
displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw
materials purchases in April are $560,000, and factory payroll cost
in April is $376,000. Overhead costs incurred in April are:
indirect materials, $55,000; indirect labor, $21,000; factory rent,
$38,000; factory utilities, $24,000; and factory equipment
depreciation, $59,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $640,000 cash in April.
Costs of...
Required information The following information applies to the questions displayed below] Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $24,000; factory rent, $34,000; 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 $630,000 cash in April. Costs...
Required information [The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $83,000. 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, $56,000; indirect labor, $28,000; factory rent, $30,000; factory utilities, $24,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $690,000 cash in April. Costs of...
Required information
[The following information applies to the questions
displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw
materials purchases in April are $520,000, and factory payroll cost
in April is $388,000. Overhead costs incurred in April are:
indirect materials, $56,000; indirect labor, $28,000; factory rent,
$37,000; factory utilities, $24,000; and factory equipment
depreciation, $61,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $680,000 cash in April.
Costs of...