Question

Required information 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 $520,000, and factory payroll cost in April is $389,000. Overhead costs incurred in April are: indirect materials, $51,000; Indirect labor, $27,000; factory rent, $39,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 300 $ 30,000 22,000 11,000 $ 35,000 14,000 7,000 Balances on March 31 Direct materiala Direct labor Applied overhead Coats during April Direct materiala Direct labor Applied overhead Status on April 30 $110,000 104,000 139,000 104, DOO 2 Finished (Hold) 215,000 154,000 2 Finished (unsold) In process a. Materials purchases (on credit)

Answer 1

Transaction	General Journal	Debit	Credit
a.	Raw Material Inventory	520,000
	Accounts Payable		520,000
b.	Work in process Inventory	464,000
	Raw material Inventory		464,000
c.	Work in process Inventory	362,000
	Cash		362,000
d.	Factory Overhead	27,000
	Cash		27,000
e.	Work in process Inventory	181,500
	Factory Overhead		181,500
f-1.	Factory Overhead	51,000
	Raw material Inventory		51,000
f-2.	Factory Overhead	20,000
	Cash		20,000
f-3.	Factory Overhead	56,000
	Accumulated Dep-Factory Equipment		56,000
f-4.	Factory Overhead	39,000
	Cash		39,000
g.	Finished Goods Inventory	860,000
	Work in process inventory		860,000
h.	Cost of goods sold	358,000
	Finished Goods inventory		358,000
i.	Cash	660,000
	Sales		660,000
j.	Cost of goods sold	11,500
	Factory Overhead		11,500
Marcelino Company
Schedule of Cost of Goods Manufactured
Direct Material used	464,000
Direct labor used	362,000
Factory OH applied	181,500
Total manufacturing cost	1,007,500
Add: WIP Beg	119,000
Total cost of WIP	1,126,500
Less: WIP Ending	(266,500)
Cost of goods manufactured	860,000