Question

I need help with my assignment please..

Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 The following information les to the questions displayed below) Marcelino Con March 31 inventory of raw materials is 580.000 Raw materials purchases in Aprs are 5500,000, and factory payroll cost in Apr is $387000 Overhead costs incurred in April be indirect matenas $59.000 indirect labor $27000factory rent, $36.000, factory res. $22.000 and factory equipment depreciation $60,000. The predetermined overhead rate is 50% of direct labor cost Job 306 15 sold for 5670.000 cash in April Costs of the three jobs worked on in April follow Job 306 Job 307 JOD 308 $ 32.000 23.000 11.500 $36.000 18.000 9,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during Apr Drect materials Dvector Applied overhead 132,000 104,000 205,000 151,000 $110.000 105.000 Status on Apr 30 Finished sold Finished unsold in process Problem 2-1A Part 1 Required 1. Determine the total of each production cost incurred for April (direct labor direct matenals and applied overhead), and the total cost assigned to each job (including the balances from March 31) Job 306 Job 307 Job 308 April Total From March Direct Matenas 32.000 38.000 Direct Labor 18 000 23,000 11.500 68.000 41.000 20.500 9.000 Applied Overhead Beginning goods in process For April Direct Materials Direct Labor 132.000 104 000 205,000 151,000 110.000 105,000 447 000 360.000 Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in Finished (sold) Finished (unsold) in proces Problem 2-1A Part 2 a. Materials purchases (on credit) b. Direct matenals used in production c. Direct labor paid and assigned to Work in Process Inventory d. Indirect labor paid and assigned to Factory Overhead .. Overhead costs applied to Work in Process Inventory 1. 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 I. Revenue from the sale of Job 306 Assignment of any underapplied or overapplied overhead to the cost of Goods Sold account (The amount is not material)

Answer 1

Ans.

1.

	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	$32,000	$36,000		$68,000
Direct Labor	23,000	18,000		$41,000
Applied overhead	11,500	9,000		$20,500
Beginning goods in process	$66,500	$63,000		$129,500
For April
Direct Materials	132,000	205,000	110,000	$447,000
Direct Labor	104,000	151,000	105,000	$360,000
Applied overhead	52,000	75,500	52,500	180,000
Total costs added in April	288,000	431,500	267,500	987,000
Total costs (April 30)	$354,500	$494,500	$267,500	$1,116,500
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods inventory	Goods in process inventory

2.

Transaction	General Journal	Debit	Credit
a	Raw materials inventory	$ 500,000.00
	Accounts payable		$ 500,000.00
b	Work in Process Inventory	$ 447,000.00
	Raw materials inventory		$ 447,000.00
c	Work in Process Inventory	$ 360,000.00
	Cash		$ 360,000.00
d	Factory Overhead	$    27,000.00
	Cash		$    27,000.00
e	Work in Process Inventory	$ 180,000.00
	Factory Overhead		$ 180,000.00
f(1)	Factory Overhead	$    59,000.00
	Raw materials inventory		$    59,000.00
f(2)	Factory Overhead	$    22,000.00
	Cash		$    22,000.00
f(3)	Factory Overhead	$    60,000.00
	Accumulated depreciation-factory equipment		$    60,000.00
f(4)	Factory Overhead	$    36,000.00
	Cash		$    36,000.00
g	Finished Goods Inventory	$ 849,000.00
	Work in Process Inventory		$ 849,000.00
h	Cost of Goods Sold	$ 354,500.00
	Finished Goods Inventory		$ 354,500.00
i	Cash	$ 670,000.00
	Sales		$ 670,000.00
j	Cost of Goods Sold	$    24,000.00
	Factory Overhead		$    24,000.00

3.

MARCELINO COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Direct Marerial Used	$      447,000.00
Direct Labor Used	$      360,000.00
Factory Overhead applied	$      180,000.00
Total Manufacturing Costs	$      987,000.00
Add : Work in Process March 31	$      129,500.00
Total cost of Work in Process	$ 1,116,500.00
Less : Work in Process April 30	$   (267,500.00)
Cost of Goods Manufactured	$      849,000.00

4.1

Sales	$ 670,000.00
Less: Cost of goods sold	$(378,500.00)
Gross profit	$ 291,500.00

Cost of goods sold = $ 354,500 + $ 24,000 = $ 378,500

4.2

Inventories
Raw materials	$82,000
Goods in process	367,500
Finished goods	494,500
Total inventories	$944,000

Raw Materials = $ 88,000 + $ 500,000 - $ 447,000 - $ 59,000 = $ 82,000