Question

Marcelino's March 31 inventory of raw materials is $80.000 Raw materials purchases in April are $500000 and factory payroll cost in April is $363.000. Overhead costs incurred in April are indirect materials. $50,000 indirect labor. $23.000, factory rent. $32,000, factory utilities. S19.000 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 387 Job 308 $ 29,000 20,000 10,eee $ 35,000 18,eee 9,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 135,000 85.000 220,000 150,000 $100,000 105,000 Finished Finished (sold) (unsold) In process 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 f. 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. hCnet of Annie cnid for Inh 26

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Working for Total manufacturing Cost: Job 306 Job 307 Job 308 Total-April From March: Direct Material Direct Labor Applied Overhread 29,000 $ 20,000 $ 10,000 $ 35,000 18,000 9,000 50% of Direct Labor Beginning WIP A $ 59,000 $ 62,000 $ 121,000 Cost added in April Direct Material Direct Labor Applied Overhread 50% of Direct Labor Total Cost added in Apri B $ $ 135,000 $ 85,000 $ 42,500 $ 262,500 $ 220,000 $ 150,000 $ 75,000 $ 445,000 $ 100,000 $ 105,000 $ 52,500 $ 257,500 $ 455,000 340,000 170,000 965,000 $ Total Cost A+B $ 1,086,000 $ 321,500 Finished -Sold $ 507,000 $ 257,500 Finished -UnSold in process Part 1 Journal Entries: Event Account Debit Credit $ 500,000 Raw Material Inventory Accounts Payable (To record purchase of inventory) $ 500,000 $ 455,000 Work in Process Inventory Raw Material Inventory (To assign direct material to job) $ 455,000 $ 340,000 Work in Process Inventory Cash (To assign direct labor to job) $ 340,000 $ 23,000 Factory Overhead Cash (To record indiret Labor) $ 23,000 $ 170,000 Work in Process Inventory Factory Overhead (To record applied overheads) $ 170,000

$ 50,000 --- Factory Overhead Raw Material Inventory (To record indiret Material) 50,000 $ 32,000 Factory Overhead Cash (To record rent) 32,000 60 bos s $ 19,000 Factory Overhead Cash (To record utilities) 19,000 $ 51,000 - - Factory Overhead Accumulated Depreciation-Equipment (To record dep) 51,000 - $ 828,500 Finished Goods Inventory Work in process inventory (To record jobs completed 306 and 307) $ 828,500 $ 321,500 Cost of Goods Sold Finished Goods Inventory (To record cost of goods sold Job 306) $ 321,500 $ 635,000 - - Cash Sale (To record sale of Job 306) $ 635,000 $ 5,000 EE Cost of Goods Sold Factory Overhead (To assign under applied overheads) 5,000 $ 170,000 $ Applied Overheads Less: Actual Overheads Indirect Material Indirect Labor Rent Utilities Depreciation Under Applied Overheads 50,000 23,000 32,000 19,000 51,000 $ $ $ 175,000 -5,000