Question

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 of the three jobs worked on in April follow. Job 308 Job 306 Job 307 Balances on March 31 Direct materials 28,000 23,000 11,500 $38,000 14,000 7,000 Direct labor Applied overhead Costs during April Direct materials Direct labor 137,000 104,000 210,000 153,000 $115,000 105,000 Applied overhead Finished Finished In Status on April 30 (sold) (unsold) process

Answer 1

			Job 306	Job 307	Job 308	April
1)						total
From March
Direct materials			28,000	38,000	0	66,000
Direct labor			23,000	14,000	0	37,000
applied overhead			11,500	7,000	0	18,500
Beginning goods in process			62,500	59,000	0	121,500
For April
Direct materials			137,000	210,000	115,000	462,000
Direct labor			104,000	153,000	105,000	362,000
applied overhead			52000	76500	52500	181,000
Total costs added in April			293,000	439,500	272,500	1,005,000
total costs (April 30)			355,500	498,500	272,500	1,126,500
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				462,000
		Raw materials inventory					462,000
	c.	Work in process inventory				362,000
		Cash					362,000
	d.	Factory overhead				24,000
		cash					24,000
	e.	Work in process inventory				181,000
		Factory overhead					181,000
	f.	Factory overhead				165,000
		Raw materials inventory					54,000
		Cash					56,000
		Accumulated Depreciation					55,000
	g.	finished goods inventory				854,000
		Work in process inventory					854,000
	h.	Cost of goods sold				355,500
		finished goods inventory					355,500
	i.	Cash				675,000
		sales					675,000
	j.	cost of goods sold				8,000
		Factory overhead					8,000
3)		Schedule of goods of goods manufactured
		direct materials used					462,000
		Direct labor used					362,000
		factory overhead applied					181,000
		total manufacturing costs					1,005,000
		Add:work in process March 31					121,500
		total cost of work in process					1,126,500
		less:work in process April 30					272,500
		cost of goods manufactured					854,000