Question

Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $28,000; factory rent, $31,000; factory utilities, $24,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $700,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 27,000 23,000 11,500 $ 38,000 18,000 9,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 132,000 102,000 220,000 154,000 $105,000 101,000 Finished (sold) Finished (unsold) In process

Answer 1

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Above question asked for Mainly Journal Entries , I have updated all relevant Journal entries , Please check line by line .

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	In this problem , We need to accounted Journal Entries
	Details	Debit($)	Credit($)
a)	Raw Material Inventory	5,90,000
	Account Payable		5,90,000
b)	Work in progress- Inventory	4,57,000
	Raw Material Inventory		4,57,000
c)	Work in progress- Inventory	3,57,000
	Cash		3,57,000
d)	Factory Overhead( as per Question- Indirect labour paid and assigned to Factory Overhead)	28,000
	Cash		28,000
e)	Work in progress- Inventory	1,78,500
	Overhead - factory		1,78,500
f)	Overhead - factory	56,000
	Raw Material Inventory ( Indirect Material)		56,000
f)	Overhead - factory - Factory Rent	31,000
	Cash		31,000
f)	Overhead - factory - Factory Utilities	24,000
	Cash		24,000
f)	Overhead - factory - Factory Utilities	59,000
	Accumulated Depreciation- Factory Equipment		59,000
	Over /under OH applied
	Cost of goods sold	19,500
	Overhead - factory -		19,500
	Cash	7,00,000
	Sales ( Job 306 sold @ cash)		7,00,000
	As per Question , Only Job 306 +307 transfer to Finished Goods Inventory
	Cost of Job 306 ( as below ) $ 346500
	Cost of Job 307( as below) $ 516000
	Finished Goods Inventory ( $ 346500+$516000)	8,62,500
	Work in progress- Inventory		8,62,500
	Cost of goods sold ( transfer only Job 306)- as below	3,46,500
	Finished Goods Inventory		3,46,500
Workings
Cost incurred during April	Job 306$	Job 307$	Job 308$	Total $
Direct Material	1,32,000	2,20,000	1,05,000	4,57,000
Direct Labour	1,02,000	1,54,000	1,01,000	3,57,000
Balance On march 31
Direct material	27,000	38,000		65,000
Direct Labour	23,000	18,000		41,000
Applied OH	11,500	9,000		20,500
Cost incurred during April
Direct material	1,32,000	2,20,000	1,05,000	4,57,000
Direct Labour	1,02,000	1,54,000	1,01,000	3,57,000
Applied OH ( As per Question - 50% of Direct labour cost	51,000	77,000	50,500	1,78,500
Total cost Added	2,85,000	4,51,000	2,56,500	9,92,500
Total cost as on April 30	3,46,500	5,16,000	2,56,500	11,19,000
Overhead - factory
Indirect material				56,000
Indirect Labour				28,000
Factory rent				31,000
Factory Utilities				24,000
Factory Equipment depreciation				59,000
Overhead - factory Total				1,98,000
Applied Overhead				19,500