Question

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases April are $500,000, and factory payroll cost in April is $363.000 Overhead costs incurred in April are: indirect materials, $50,000, indirect labor, $23,000; factory rent. $32,000, factory utilities, $19,000, and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Job 386 Job 307 Job 388 $ 29,000 20,000 10,000 $ 35,000 18,000 9,000 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 85,000 ? Finished (sold) 220,000 150,000 ? Finished (unsold) $100,000 105,000 ? In process

Answer 1

Account Titles	Debit	Credit
Raw Material Inventory	$          500,000
Accounts Payable		$            500,000
Work in Process Inventory	$          455,000
Raw Material Inventory		$            455,000
Work in Process Inventory	$          340,000
Cash		$            340,000
Manufacturing Overhead	$            23,000
Cash		$              23,000
Work in Process Inventory	$          170,000
Manufacturing Overhead		$            170,000
Manufacturing Overhead	$            50,000
Raw Material Inventory		$              50,000
Manufacturing Overhead	$            32,000
Cash		$              32,000
Manufacturing Overhead	$            51,000
Accumulated Depreciation		$              51,000
Manufacturing Overhead	$            19,000
Cash		$              19,000
Finished Goods Inventory	$          828,500
Work in Process Inventory		$            828,500
Cost of Goods Sold	$          321,500
Finished Goods Inventory		$            321,500
Cash	$          635,000
Sales Revenue		$            635,000
Cost of Goods Sold	$              5,000
Manufacturing Overhead		$                5,000

	Job 306	Job 307	Job 308	Total
From March
Direct Material	$            29,000	$              35,000		$          64,000
Direct Labor	$            20,000	$              18,000		$          38,000
Applied Overhead	$            10,000	$                9,000		$          19,000
Beginning Goods in Process	$            59,000	$              62,000		$        121,000
For April
Direct Material	$          135,000	$            220,000	$         100,000	$        455,000
Direct Labor	$            85,000	$            150,000	$         105,000	$        340,000
Applied Overhead	$            42,500	$              75,000	$           52,500	$        170,000
Total Costs added in April	$          262,500	$            445,000	$         257,500	$        965,000
Total Costs	$          321,500	$            507,000	$         257,500	$     1,086,000
Status on April 30	Finished (Sold)	Finished (UnSold)	In Process
April 30 cost included in	Cost of Goods Sold	Finished Goods Inventory	Work in Process Inventory

Sales	$     635,000
Cost of Goods Sold	$     326,500
Gross Profit	$     308,500

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