Question

Required Information The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $386.000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $27.000; factory rent, $35.000; factory utilities, $20,000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 cash in April. Costs of the three jobs worked on in April follow. Job 386 Job 307 Job 308 $ 27,888 21,000 10, see $ 37,000 17,800 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 131,000 103,000 205,000 154,000 $110,000 102, Finished (sold) Finished (unsold) In process a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) 9. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. 1. Revenue from the sale of Job 306. J. 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. View transaction list Prev 2 3 4 of 5 Next

Answer 1

Journal entries
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Raw material inventory		5,20,000
	Accounts payable				5,20,000
	(for material purchased on account)
b.	Work in process inventory		4,46,000
	Raw material inventory			4,46,000
	(for material used)
c.	Work in process inventory		359000
	Cash account				359000
	(for direct labour paid)
d.	Factory overheads			27000
	Cash account				27000
	(for indirect labour paid)
e.	Work in process inventory		179500
	Factory overheads			179500
	(for overheads applied)
f.	Factory overheads			163000
	Raw material inventory			54000
	Cash account				55000
	Accumulated dep				54000
	(for overheads incurred)
g.	Finished goods inventory		842500
	Work in process inventory			842500
	(for goods finished during the period)
h.	Cost of goods sold			344000
	Finished goods inventory			344000
	(for cost of goods sold)
i.	Cash				665000
	Sales revenue				665000
	(for sales made)
j.	Cost of goods sold			10500
	Factory overheads	(163000+27000-179500)	10500
	(for under-aplied overheads closed)