Marcelino Co.\'s March 31 inventory of raw materials is $80,000. Raw materials p
ID: 2330579 • Letter: M
Question
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $377,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $22,000; factory rent, $39,000; factory utilities, $20,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 cash in April. Costs of the three jobs worked on in April follow.
rev: 03_15_2018_QC_CS-121813
Materials purchases (on credit).
Direct materials used in production.
Direct labor paid and assigned to Work in Process Inventory.
Indirect labor paid and assigned to Factory Overhead.
Overhead costs applied to Work in Process Inventory.
Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
Transfer of Jobs 306 and 307 to Finished Goods Inventory.
Cost of goods sold for Job 306.
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.)
2. Prepare journal entries for the month of April to record the above transactions.
Explanation / Answer
Job 306 Job 307 Job 308 April 1) total From March Direct materials 30,000 36,000 0 66,000 Direct labor 22,000 16,000 0 38,000 applied overhead 11,000 8,000 0 19,000 Beginning goods in process 63,000 60,000 0 123,000 For April Direct materials 133,000 200,000 115,000 448,000 Direct labor 102,000 153,000 100,000 355,000 applied overhead 51000 76500 50000 177,500 Total costs added in April 286,000 429,500 265,000 980,500 total costs (April 30) 349,000 489,500 265,000 1,103,500 Satus on april 30 fin(sold) fin(unsold) in process April costs included in : COGS finished WIP goods inventory 2) TR General journal Debit Credit a. Raw materials inventory 510,000 Accounts payable 510,000 b. Work in process inventory 448,000 Raw materials inventory 448,000 c. Work in process inventory 377,000 Cash 377,000 d. Factory overhead 22,000 cash 22,000 e. Factory overhead 177,500 work in process inventory 177,500 f. Factory overhead 170,000 Raw materials inventory 53,000 Cash 59,000 Accumulated Depreciation 58,000 g. finished goods inventory 838,500 Work in process inventory 838,500 h. Cost of goods sold 349,000 finished goods inventory 349,000 i. Cash 645,000 sales 645,000 j. cost of goods sold 14,500 Factory overhead 14,500