Question

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The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $389,000. Overhead costs incurred in April are: Indirect materials, $53,000: indirect labor. $27,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 32,000 21,000 10,500 $ 42,000 17,000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 135,000 103,000 205,000 154,000 $115,000 105,000 2 In Finished (sold) Finished (unsold) 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. h. Cost of goods sold for Job 306. 1. 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.) 2. Prepare journal entries for the month of April to record the above transactions. View transaction list Journal entry worksheet 7 8 ..... 13 Record the entry for Overhead costs applied to Work in Process Inventory

Answer 1

3)		Schedule of goods of goods manufactured
		direct materials used					455,000
		Direct labor used					362,000
		factory overhead applied					181,000
		total manufacturing costs					998,000
		Add:work in process March 31					131,000
		total cost of work in process					1,129,000
		less:work in process April 30					272,500
		cost of goods manufactured					856,500
4)		Gross profit
		sales				680,000
		less cost of goods sold				366,000
		Gross profit				314,000
5)		inventories
		Raw materials				104,000
		work in process				272,500
		finished goods				503,500
		total inventories				880,000
	Working notes
		Actual overhead
		indirect material			53,000
		indirect labor			27,000
		depreciation			58,000
		Factory rent			35,000
		factory utilities			21,000
		total			194,000
		overhead applied			181,000
		under applied overhead			13,000
		Raw materials inventory
		beginning raw materials			82,000
		purchased			530,000
		direct materials used			-455,000
		indirect materials used			-53,000
		ending raw materials inventory			104,000