Solution 2:
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 | $28,000.00 | $43,000.00 | $0.00 | $71,000.00 |
Direct labor | $24,000.00 | $13,000.00 | $0.00 | $37,000.00 |
Applied overhead (50% of direct labor) | $12,000.00 | $6,500.00 | $0.00 | $18,500.00 |
Beginning Goods in Process | $64,000.00 | $62,500.00 | $0.00 | $126,500.00 |
For April: | ||||
Direct material | $131,000.00 | $200,000.00 | $110,000.00 | $441,000.00 |
Direct labor | $103,000.00 | $151,000.00 | $101,000.00 | $355,000.00 |
Applied overhead (50% of direct labor) | $51,500.00 | $75,500.00 | $50,500.00 | $177,500.00 |
Total Cost added in April | $285,500.00 | $426,500.00 | $261,500.00 | $973,500.00 |
Total Costs (April 30) | $349,500.00 | $489,000.00 | $261,500.00 | $1,100,000.00 |
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 |
Journal Entries - Marcelino Co | |||
Event | Particulars | Debit | Credit |
a | Raw material inventory Dr | $530,000.00 | |
To Accounts Payable | $530,000.00 | ||
(To record purchase of raw material) | |||
b | Work In Process Dr | $441,000.00 | |
To Raw material inventory | $441,000.00 | ||
(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 | $53,000.00 | |
To Raw material inventory | $53,000.00 | ||
(To record indirect material used) | |||
f2 | Factory Overhead Dr | $36,000.00 | |
To Cash | $36,000.00 | ||
(To record factory rent) | |||
f3 | Factory Overhead Dr | $22,000.00 | |
To Cash | $22,000.00 | ||
(To record factory utilities) | |||
f4 | Factory Overhead Dr | $52,000.00 | |
To Accumulated Depreciation | $52,000.00 | ||
(To record factory depreciation) | |||
g | Finished goods inventory Dr | $838,500.00 | |
To Work In Process | $838,500.00 | ||
(Being completed jobs transferred to finished goods) | |||
h | Cost of goods sold Dr | $349,500.00 | |
To Finished goods inventory | $349,500.00 | ||
(To record cost of goods sold for Job 306) | |||
i | Cash Dr | $635,000.00 | |
To Sales Revenue | $635,000.00 | ||
(To record sales of Job 306) | |||
j | Cost of goods sold Dr | $12,500.00 | |
To Factory Overhead ($190,000 - $177,500) | $12,500.00 | ||
(To close underapplied overhead to COGS) |
Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4...
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...
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% of direct...
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 $83,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $28,000; factory rent, $39,000; factory utilities, $24,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct...
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 $530,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $25,000; factory rent, $35,000; factory utilities, $23,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct...
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 $590,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $28,000; factory rent, $31,000; factory utilities, $24,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50%...
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 $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363.000. Overhead costs incurred in Aprilare: 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...
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 02-1A 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 $88,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $376,000. Overhead costs incurred in Aprilare: Indirect materials. $60,000. Indirect labor $22,000, factory rent, $39.000; factory utilities, $23.000, and factory equipment depreciation. $61.000. The predetermined overhead rate is 50% of direct...
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 $83,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $378,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $23,000; factory rent, $36,000; factory utilities, $21,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct...
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%...