Solution 1: | ||||
Computation of production cost incurred in april and total cost assigned to each job | ||||
Particulars | Job 306 | Job 307 | Job 308 | Total |
From March: | ||||
Direct material | $31,000.00 | $44,000.00 | $0.00 | $75,000.00 |
Direct labor | $21,000.00 | $13,000.00 | $0.00 | $34,000.00 |
Applied overhead (50% of direct labor) | $10,500.00 | $6,500.00 | $0.00 | $17,000.00 |
Beginning Goods in Process | $62,500.00 | $63,500.00 | $0.00 | $126,000.00 |
For April: | ||||
Direct material | $131,000.00 | $215,000.00 | $120,000.00 | $466,000.00 |
Direct labor | $101,000.00 | $150,000.00 | $104,000.00 | $355,000.00 |
Applied overhead (50% of direct labor) | $50,500.00 | $75,000.00 | $52,000.00 | $177,500.00 |
Total Cost added in April | $282,500.00 | $440,000.00 | $276,000.00 | $998,500.00 |
Total Costs (April 30) | $345,000.00 | $503,500.00 | $276,000.00 | $1,124,500.00 |
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 |
Solution 2: | |||
Journal Entries - Marcelino Co | |||
Event | Particulars | Debit | Credit |
a | Raw material inventory Dr | $590,000.00 | |
To Accounts Payable | $590,000.00 | ||
(To record purchase of raw material) | |||
b | Work In Process Dr | $466,000.00 | |
To Raw material inventory | $466,000.00 | ||
(To record raw material used in production) | |||
c | Work In Process Dr | $355,000.00 | |
To Cash | $355,000.00 | ||
(To record direct labor payment and assigment to production) | |||
d | Factory overhead Dr | $27,000.00 | |
To Cash | $27,000.00 | ||
(To record Indirect labor payment and assigment to factory overhead) | |||
e | Work In Process Dr | $177,500.00 | |
To Factory Overhead | $177,500.00 | ||
(To apply overhead to production) | |||
f1 | Factory Overhead Dr | $55,000.00 | |
To Raw material inventory | $55,000.00 | ||
(To record indirect material used) | |||
f2 | Factory Overhead Dr | $35,000.00 | |
To Cash | $35,000.00 | ||
(To record factory rent) | |||
f3 | Factory Overhead Dr | $24,000.00 | |
To Cash | $24,000.00 | ||
(To record factory utilities) | |||
f4 | Factory Overhead Dr | $53,000.00 | |
To Accumulated Depreciation | $53,000.00 | ||
(To record factory depreciation) | |||
g | Finished goods inventory Dr | $848,500.00 | |
To Work In Process | $848,500.00 | ||
(Being completed jobs transferred to finished goods) | |||
h | Cost of goods sold Dr | $345,000.00 | |
To Finished goods inventory | $345,000.00 | ||
(To record cost of goods sold for Job 306) | |||
i | Cash Dr | $640,000.00 | |
To Sales Revenue | $640,000.00 | ||
(To record sales of Job 306) | |||
j | Cost of goods sold Dr | $16,500.00 | |
To Factory Overhead | $16,500.00 | ||
(To close underapplied overhead to COGS) |
Solution 3: | |
Marcelino company | |
Schedule of cost of goods manufactured | |
For the month ended April 30 | |
Particulars | Amount |
Direct material | $466,000.00 |
Direct labor | $355,000.00 |
Applied overhead (50% of DL Cost) | $177,500.00 |
Total manufacturing costs | $998,500.00 |
Add: Beginning WIP | $126,000.00 |
Total cost of work in process | $1,124,500.00 |
Less: Ending WIP | $276,000.00 |
Cost of goods manufactured | $848,500.00 |
Solution 4a: Adjusted cost of goods sold = Unadjusted cost of goods sold + Underapplied overhead = $345,000 + $16,500 = $361,500 Gross profit = Sales Revenue - Cost of goods sold =$640,000 - $361,500 = $278,500 |
Solution 4b: | |
Inventories - April 30 | |
Particulars | Amount |
Raw material inventory ($82,000 + $590,000 - $466,000 - $55,000) | $151,000.00 |
Work In Process Inventory | $276,000.00 |
Finished goods inventory | $503,500.00 |
Total | $930,500.00 |
Check my work ܠܢ 1 Part 25 Required information Problem 15-1A Production costs computed and recorded;...
Check my we Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 The following information applies to the questions displayed below) Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $29,000; factory rent, $40,000; factory utilities, $22,000, and factory equipment depreciation, $55,000. The predetermined overhead rate...
Required information 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 $88,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are indirect materials, 551,000, indirect labor, $22.000; factory rent, $35,000; factory utilities, $25,000, and factory equipment depreciation, $59,000. The predetermined overhead rate is 50%...
Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (The following information applies to the questions displayed below) Marcelino Co's March 31 inventory of raw materials is $87000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $384.000. Overhead costs incurred in April are Indirect materials, $53,000, indirect labor. $27,000; factory rent. $40,000; factory utilities, $21.000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50% of...
Required information 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 $87,000. 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, $58,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $23,000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50%...
Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (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 $570,000, and factory payroll cost in April is $381,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $26,000; factory rent, $32,000; factory utilities, $22,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of...
Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $387.000. Overhead costs incurred in April are: indirect materials, $55,000 $29,000; factory rent, $34.000; factory utilities, $21,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor...
Required information 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 $87,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $27,000; factory rent, $37,000; factory utilities, $23,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50%...
mework i Help Save & Exit Sube Check my wo Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 [The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $87.000. Raw materials purchases in April are $590.000, and factory payroll cost in April is $386.000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $29.000; factory rent, $40,000; factory utilities, $22,000; and factory...
Required information Problem 19-1A 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 $86,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $387,000. Overhead costs incurred in April are: Indirect materials. $60,000, indirect labor, $28,000 factory rent, $38,000; factory utilities, $22,000, and factory equipment depreciation, $53,000. The predetermined overhead rate is 50%...
Required information 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 $85,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $58,000; Indirect labor $29,000; factory rent, $30,000; factory utilities, $22,000, and factory equipment depreciation, $54,000. The predetermined overhead rate is 50%...