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 | $26,000.00 | $42,000.00 | $0.00 | $68,000.00 |
Direct labor | $21,000.00 | $18,000.00 | $0.00 | $39,000.00 |
Applied overhead (50% of direct labor) | $10,500.00 | $9,000.00 | $0.00 | $19,500.00 |
Beginning Goods in Process | $57,500.00 | $69,000.00 | $0.00 | $1,26,500.00 |
For April: | ||||
Direct material | $1,36,000.00 | $2,00,000.00 | $1,05,000.00 | $4,41,000.00 |
Direct labor | $1,04,000.00 | $1,55,000.00 | $1,04,000.00 | $3,63,000.00 |
Applied overhead (50% of direct labor) | $52,000.00 | $77,500.00 | $52,000.00 | $1,81,500.00 |
Total Cost added in April | $2,92,000.00 | $4,32,500.00 | $2,61,000.00 | $9,85,500.00 |
Total Costs (April 30) | $3,49,500.00 | $5,01,500.00 | $2,61,000.00 | $11,12,000.00 |
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 | $6,00,000.00 | |
To Accounts Payable | $6,00,000.00 | ||
(To record purchase of raw material) | |||
b | Work In Process Dr | $4,41,000.00 | |
To Raw material inventory | $4,41,000.00 | ||
(To record raw material used in production) | |||
c | Work In Process Dr | $3,63,000.00 | |
To Cash | $3,63,000.00 | ||
(To record direct labor payment and assigment to production) | |||
d | Factory overhead Dr | $22,000.00 | |
To Cash | $22,000.00 | ||
(To record Indirect labor payment and assigment to factory overhead) | |||
e | Work In Process Dr | $1,81,500.00 | |
To Factory Overhead | $1,81,500.00 | ||
(To apply overhead to production) | |||
f1 | Factory Overhead Dr | $55,000.00 | |
To Raw material inventory | $55,000.00 | ||
(To record indirect material used) | |||
f2 | Factory Overhead Dr | $33,000.00 | |
To Cash | $33,000.00 | ||
(To record factory rent) | |||
f3 | Factory Overhead Dr | $23,000.00 | |
To Cash | $23,000.00 | ||
(To record factory utilities) | |||
f4 | Factory Overhead Dr | $57,000.00 | |
To Accumulated Depreciation | $57,000.00 | ||
(To record factory depreciation) | |||
g | Finished goods inventory Dr | $8,51,000.00 | |
To Work In Process | $8,51,000.00 | ||
(Being completed jobs transferred to finished goods) | |||
h | Cost of goods sold Dr | $3,49,500.00 | |
To Finished goods inventory | $3,49,500.00 | ||
(To record cost of goods sold for Job 306) | |||
i | Cash Dr | $6,80,000.00 | |
To Sales Revenue | $6,80,000.00 | ||
(To record sales of Job 306) | |||
j | Cost of goods sold Dr | $8,500.00 | |
To Factory Overhead | $8,500.00 | ||
(To close underapplied overhead to COGS) |
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