Question

Required information [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 $500,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $25,000; factory rent, $37,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. 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 306 Job 307 Job 308 $ 30,000 24,000 12,000 $ 39,000 13,000 6,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 131,000 102,000 210,000 153,000 $ 105,000 105,000 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.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. 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 Journal entry worksheet < 1 2 3 4 5 6 7 8 13 > 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

Req 2	Transaction	General Journal	Debit	Credit
	a.	Raw Material Inventory	500,000
		Accounts Payable		500,000
	b.	Work in process Inventory	446,000
		Raw material Inventory		446,000
	c.	Work in process Inventory	360,000
		Cash		360,000
	d.	Factory Overhead	25,000
		Cash		25,000
	e.	Work in process Inventory	180,000
		Factory Overhead		180,000
	f-1.	Factory Overhead	57,000
		Raw material Inventory		57,000
	f-2.	Factory Overhead	20,000
		Cash		20,000
	f-3.	Factory Overhead	52,000
		Accumulated Dep-Factory Equipment		52,000
	f-4.	Factory Overhead	37,000
		Cash		37,000
	g.	Finished Goods Inventory	848,000
		Work in process inventory		848,000
	h.	Cost of goods sold	350,000
		Finished Goods inventory		350,000
	i.	Cash	665,000
		Sales		665,000
	j.	Cost of goods sold	11,000
		Factory Overhead		11,000
Req 3	Marcelino Company
	Schedule of Cost of Goods Manufactured
	Direct Material used	446,000
	Direct labor used	360,000
	Factory OH applied	180,000
	Total manufacturing cost	986,000
	Add: WIP Beg	124,500
	Total cost of WIP	1,110,500
	Less: WIP Ending	(262,500)
	Cost of goods manufactured	848,000
Req 4.1
	Sales	665,000
	Less: Cost of goods sold	(361,000)
	Gross profit	304,000
Req 4.2	Inventories
	Raw materials	79,000
	Goods in process	262,500
	Finished goods	498,000
	Total inventories	839,500