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Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $376,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $21,000; factory rent, $38,000; 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 $640,000 cash in April. Costs of the three jobs worked on in April follow.

	Job 306				Job 307				Job 308
Balances on March 31
Direct materials		$	28,000			$	43,000
Direct labor			24,000				17,000
Applied overhead			12,000				8,500
Costs during April
Direct materials			139,000				215,000			$	105,000
Direct labor			101,000				151,000				103,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. 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.

Journal entry worksheet < 1 2 3 4 5 6 7 8 .... 13 > III.. Record the entry for Materials purchases (on credit). Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal

Answer 1

Transaction	General Journal	Debit	Credit
a.	Raw Material Inventory	560,000
	Accounts Payable		560,000
b.	Work in process Inventory	459,000
	Raw material Inventory		459,000
c.	Work in process Inventory	355,000
	Cash		355,000
d.	Factory Overhead	21,000
	Cash		21,000
e.	Work in process Inventory	177,500
	Factory Overhead		177,500
f-1.	Factory Overhead	55,000
	Raw material Inventory		55,000
f-2.	Factory Overhead	24,000
	Cash		24,000
f-3.	Factory Overhead	59,000
	Accumulated Dep-Factory Equipment		59,000
f-4.	Factory Overhead	38,000
	Cash		38,000
g.	Finished Goods Inventory	864,500
	Work in process inventory		864,500
h.	Cost of goods sold	354,500
	Finished Goods inventory		354,500
i.	Cash	640,000
	Sales		640,000
j.	Cost of goods sold	19,500
	Factory Overhead		19,500
Marcelino Company
Schedule of Cost of Goods Manufactured
Direct Material used	459,000
Direct labor used	355,000
Factory OH applied	177,500
Total manufacturing cost	991,500
Add: WIP Beg	132,500
Total cost of WIP	1,124,000
Less: WIP Ending	(259,500)
Cost of goods manufactured	864,500
Sales	640,000
Less: Cost of goods sold	(374,000)
Gross profit	266,000
Inventories
Raw materials	126,000
Goods in process	259,500
Finished goods	510,000
Total inventories	895,500