Question

Acct 202... there's 13 journal entries (i.e. letters a-j).

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 in $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 the three jobs worked on in April follow Job 386 Job 3073 Job 30 $ 29, eee 20.ee 10,000 $ 35, eee 18.00 9, eee Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 135,880 85,00 $100, eee 105.cc 220,000 150.00 > Finished (untold) Finished (sold) In procese a. Materials purchases (on credit). b. Direct materials used in production c. Direct labor paid and assigned to Work In Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work In Process Inventory 1. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory h. Cost of goods sold for Job 306. L. Revenue from the sale of Job 306. J. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material)

Answer 1

Journal Entries

  Debit Credit

a.Raw materials inventory $500,000

Accounts Payable $500,000

b.Work in process Inventory $455,000

Raw material Inventory $455,000

c.Work in process inventory $340,000

Cash $340,000

d.Factory Overhead $23,000

Cash $23,000

e.Work in process inventory $170,000

Factory Overhead $170,000

f.Factory Overhead $50,000

Raw material inventory $50,000

Factory Overhead $19,000

Cash $19,000

Factory Overhead $51,000

Accumulated depreciation- $51,000

factory equipment

Factory Overhead. $32,000

Cash $32,000

g.Finished goods inventory $828,500

Work in process inventory $828,500

h.Cost of Goods sold $321,500

Finished Goods Inventory $321,500

i.Cash $635,000

Sales $635,000

j.Cost of goods sold $5,000

Factory Overhead $5,000

Calculations:

Total of each production cost

Job 306 Job 307 Job 308 Total

From March

Direct Materials $29,000 $35,000 $64,000

Direct Labour $20,000 $18,000 $38,000

Applied Overhead $10,000 $9,000 $19,000

Beginning goods $59,000 $62,000 $121,000

in process

For April

Direct materials $135,000 $220,000 $100,000 $455,000

Direct Labour $85,000 $150,000 $105,000 $340,000

Applied overhead $42,500 $75,000 $52,500 $170,000

Total costs in April $262,500 $445,000 $257,500 $965,000

Total costs(April 30)$321,500 $507,000 $257,500 $1,086,000

Status on April 30. Finished Finished In process

(sold) (unsold)

Applied Overhead = 50% of direct labour

= ($85,000 + $150,000 + $105,000) × 50%

= $170,000

g.Transfer of Jobs 306 and Job 307 to Finished Goods Inventory = $321,500 + $507,000 = $828,500

j.Factory Overhead

Overhead applied to jobs $170,000

Overhead incurred

Indirect Materials $50,000

Indirect Labour $23,000

Factory rent $32,000

Factory utilities $19,000

Factory equipment depreciation $51,000

$175,000

Underapplied overhead $5,000