Question

please help answer all 4 parts of the question

Required information Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 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 $500,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $59,000Indirect labor, $26,000; factory rent, $36.000; factory utilities, $24,000, and factory equipment depreciation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 31,000 25,000 12,500 $ 40,000 15.000 7.500 Balances on March 31 Direct materiale Direct labor Applied overhead Coata during April Direct materials Direct labor Applied overhead on April 30 139,000 103,000 215,000 155.000 $115,000 101,000 Finished (sold) Finished unsold) process Problem 02-1A 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 308 April Total From March

Answer 1

1.

	Job 306	Job 307	Job 308	Total
From March
Direct Material	$                31,000	$                40,000		$                71,000
Direct labor	$                25,000	$                15,000		$                40,000
Applied Overhead	$                12,500	$                  7,500		$                20,000
Beginning goods in process	$                68,500	$                62,500	$                                  -	$              131,000
For April
Direct Material	$              139,000	$              215,000	$                      115,000	$              469,000
Direct labor	$              103,000	$              155,000	$                      101,000	$              359,000
Applied Overhead	$                51,500	$                77,500	$                         50,500	$              179,500
Total Costs added in April	$              293,500	$              447,500	$                      266,500	$          1,007,500
Total Costs (April 30)	$              362,000	$              510,000	$                      266,500	$          1,138,500
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

2.

	Account Titles	Debit	Credit
a	Raw materials inventory	$              500,000
	Accounts payable		$              500,000
b	Work in process inventory	$              469,000
	Raw materials inventory		$              469,000
c	Work in process inventory	$              359,000
	Cash		$              359,000
d	Manufacturing overhead	$                26,000
	Cash		$                26,000
e	Work in process inventory	$              179,500
	Manufacturing overhead		$              179,500
f	Manufacturing Overhead	$              176,000
	Cash		$                60,000
	Accumulated Depreciation		$                57,000
	Raw materials inventory		$                59,000
g	Finished Work inventory	$              872,000
	Work in process inventory		$              872,000
h	Cost of Work sold	$              362,000
	Finished Work inventory		$              362,000
i	Cash	$              650,000
	Sales Revenue		$              650,000
j	Cost of Goods Sold	$                22,500
	Manufacturing overhead		$                22,500

Under applied overhead = Actual Overhead - Overhead applied
= $26000+176000-179500 = $22500

3.

Cost of Goods manufactured
Direct Material used	$              469,000
Direct labor	$              359,000
Overhead applied	$              179,500
Total manufacturing Costs	$          1,007,500
Add : Beginning Work in process	$              131,000
Total Cost of Work in Process	$          1,138,500
Less : Ending Work in process	$              266,500
Cost of Goods manufactured	$              872,000

4.a
Gross Profit = Sales Revenue - Cost of Goods Sold
= $650000 - ($362000+22500) = $265,500

4b.

Inventories
Raw Material	$                58,000	=86000+500000-469000-59000
Work in Process	$              266,500
Finsihed Goods	$              510,000
Total Inventories	$              834,500