Question

CHOLMy Wor 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 $88,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $51,000, indirect labor, $22,000; factory rent, $35,000; factory utilities, $25,000, and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 cash in April. Costs of the three jobs worked on in April follow Job 386 Job 387 Job 388 Balances on March 31 Direct materials Direct labor Applied overhead Costs during $ 30,000 21,000 10,500 $ 41,000 19,000 9,500 April 210,eee 151,000 $115,888 105,800 Direct 138,888 materials Direct labor 101,200 Applied overhead Status on April Finished 3e (sold) In Finished (unsold) process Problem 15-1A Part 2

Answer 1

2
	General Journal	Debit	Credit
1	Raw materials inventory	590000
	Accounts Payable		590000
2	Work in Process inventory	463000
	Raw materials inventory		463000
3	Work in Process inventory	357000
	Cash		357000
4	Factory overhead	22000
	Cash		22000
5	Work in Process inventory	178500
	Factory overhead		178500
6	Factory overhead	51000
	Raw materials inventory		51000
7	Factory overhead	25000
	Cash		25000
8	Factory overhead	59000
	Accumulated depreciation- factory equipment		59000
9	Factory overhead	35000
	Cash		35000
10	Finished goods inventory	857000
	Work in Process inventory		857000
11	Cost of goods sold	351000
	Finished goods inventory		351000
12	Cash	675000
	Sales		675000
13	Cost of goods sold	13500
	Factory overhead		13500
Workings:
From March
Direct Materials	30000	41000		71000
Direct Labor	21000	19000		40000
Applied overhead	10500	9500		20000
Beginning goods in process	61500	69500	0	131000
For April
Direct Materials	138000	210000	115000	463000
Direct Labor	101000	151000	105000	357000
Applied overhead	50500	75500	52500	178500
Total costs added in April	289500	436500	272500	998500
Total costs (April 30)	351000	506000	272500	1129500
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods inventory	Goods in process inventory
	Actual factory overhead:
	Indirect materials	51000
	Indirect labor	22000
	Factory rent	35000
	Factory utilities	25000
	Factory depreciation equipment	59000
	Actual factory overhead	192000
	Applied overhead	178500
	Underapplied overhead	13500