Question

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 inventory of raw materials is $88,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are indirect materials, 551,000, indirect labor, $22.000; factory rent, $35,000; factory utilities, $25,000, and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675.000 cash in April. Costs of the three jobs worked on in April follow Job 306 Job 387 Job 388 Balances on March $ 41,000 19,000 9,500 Direct $ 30,000 materials Direct labor 21,000 Applied 10,500 overhead Costs during April Direct 138, eee materials Direct labor 101, Applied overhead Status on April Finished 30 (sold) 210,eee 151,000 $115,000 185, 089 Finished (unsold) In process

Answer 1

Answer 15.1.

Part1

	Job 306	Job 307	Job 308	April Total
From March
Direct Material	30000	41000		71000
Direct Labo	21000	19000		40000
Applied Overhead	10500	9500		20000
Beginning Goods in Progress	61500	69500	0	131000
For April
Direct Material	138000	210000	115000	463000
Direct Labour	101000	151000	105000	357000
Applied Overhead	50500	75500	52500	178500
Total cost added in April	289500	436500	272500	998500
Total Cost (April 30)	351000	506000	272500	1129500

Part 2

Trans	General Journal	Debit	Credit
a	Raw Material Inventory	590000
	Accounts Payable		590000
b	Work-in Progress Inventory	463000
	Raw Material Inventory		463000
c	Work-in Progress Inventory	357000
	Cash		357000
d	Factory Overhead	22000
	Cash		22000
e	Work-in Progress Inventory	178500
	Factory Overhead		178500
f	Factory Overhead	170000
	Accounts payable		51000
	cash		60000
	Equipment Depreciation		59000
g	Finished goods Inventory	857000
	Work-In progress Inventory		857000
h	Cost of goods sold	351000
	Finished goods Inventory		351000
i	Accounts receivables	675000
	Sales (Job 306)		675000
j	Cost of goods sold	13500
	Factory Overhead		13500

Part 3

Marcelino Company
Schedule of Cost of goods manufactured
For Month ended April 30
Direct material	463000
Direct labour	357000
Applied Overhead	178500
Add: Work-in progress on 31st March	131000
Total Cost of Work-in Progress	1129500
Less: Work-in progress on 30th April	272500
Cost of Goods manufactured	857000

Part 4.1

Gross Profit
Sales	675000
Less: Cost of goods Sold	-364500
Gross Profit	310500

Part 4.2

Inventories
Raw Material	215000
Goods in Progress	141500
Finished goods	506000
Total Inventory	862500