Question

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 $83,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $28,000; factory rent, $39,000; factory utilities, $24,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $690,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 28,000 24,000 12,000 $ 39,000 16,000 8,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead 138,000 102,000 ? 215,000 154,000 ? $ 105,000 102,000 ? Status on April 30 Finished (sold) Finished (unsold) In process

Answer 1

Job 306 Job 307 Job 308 April Total from March Direct Materials Direct labor 67,000 40,000 20,000 $ $ 28,000 $39,000 $ $16,000 $ 24,000 Applied overhead $ 12,000 & 8,000 Beginning goods in $ 64,000 $ 63,000 $ 0 process $ 127,000 for April Direct Materials $138,000 $215,000 $ 105,000 $ 458,000 Direct labor 102,000 $154,000 102,000 $ 358,000 Applied overhead $ 51,000 & 77,000 & 51.000 $ 179,000 Total costs added in April $ 291,000 $ 446,000 $250,000 $ 995,000 Total costs (April 30) 4355,000 $509,000 $250,000 & 1122,000 status on April 30 finished (sold) Finished (uns in process ) April 30 cost Cast of goods finished Workin process included in sold goods inventory inventory Calculation: Applied overhead 50% of direct labor cost Job 3068 Direct labor $ 102,000 X 50%. & 51,000 Job 307 Direct labor $ 154,000 X 50% $ 17,000 Job 308 Direct labor $ 102,000 X 50% $ 51,000 Total costs (April 30) Beginning goods in process & Total costs added in april

Transaction Credit Debit $ 530,000 General Journal Raw materials inventory All ounts payable (To record material purchases) $530,000 Work in process inventory & 458,000 Raw materials inventory neland direct materices used) $ 458,000 $ 358,000 work in process inventory Cash (to record direct labor paid) $ 358,000 $ 28,000 factory overhead Cash (To record factory over head) $ 28,000 $ 179,000 work in process inventory factory overhead (to record overhead cost applied) & 179,000 & 53,000 factory overhead Raw materials inventory (to record actual overhead incurred) $ 53,000 $ 24,000 factory overhead Cash (to neord factory overhead) $ 24,000

$13) $ 53,000 $ 53,000 Factory overhead Accumulated depreciation factory equipment (To record accumulated dep.) A(4) $ 39,000 $ 39.000 Factory overhead Cash (To record factory oveshead) $ 864,000 $ 864,000 Finished goods inventory work in process inventory (To record transfer jobs to finished goods) $ 355,000 Cost of goods sold Finished goods inventory ( (To record cost of goods sold) $ 355,000 3 Cash $ 690,000 & 690, doo Sales (To record sales) U. Cost of goods sold $ 18,000 Factory overhead $ 18,000 (To record cost of goods sold Calculation: (9) finished goods inventory $ 355,000 + $ 509,000 $ 864,000

gi factory overhead Overhead applied to jobs Overhead incurred Indirect materials $ 179,000 Indirect labor factory rent factory utilities factory equip. depreciation Under applied overhead $ 53,000 $ 28,000 $ 39,000 $ 24,000 $ 53,000 $ 197,000 $ 18,000 MARCELIND COMPANY Schedule of cost of Goods Manufactured for month Ended April 30 Direct materials used $ 450,000 Direct rabor used $ 358,000 factory overhead applied $ 179,000 Total manufactwing costs $ 995,000 work in process March 31 $ 127,000 Total cost of work in process $1,122,000 Less: work in process April 30 $ 258,000 Cost of 앙 goods manufactured & 864,000 Add:

4.1 ( Gross Profit # 317,000 4.2 Inventories Raw materials work in process finished goods Total inventories $ 102,000 $ 250,000 $ 509,000 & 869,000 Calculation: 4.1 Gross Profit Sales cost of goods sold $ 690,000 -(#355,000 + $18,000) $ 690,000 - $ 373,000 $ 317,000 calculated from General Notet cost of goods is Journal entry 4.2 Raw Materials inventory Beginning raw materials invention $ 23,000 Purchases $ 530,000 Direct materials used $(458000 Indirect materials used $ (53,000) Ending inventory $ 102,ooo rauw materials