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 $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $22,000; factory rent, $38,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 387 Job 308 Balances on March 31 Direct labor Applied overhead Costs during April Direct materials $ 29,000 25,000 12,500 $ 37,000 15,000 7,500 Direct materials 140,000 Direct labor Applied overhead 105,000 ? 215,000 152,000 103,000 ? $115,000 Status on April 30 Finished (sold) Finished (unsold) In process Problem 15-1A Part 1 Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). Job 306 From March Direct Materials $ 29,000 $ Direct Labor 25,000 Applied overhead 12,500 Beginning goods in process For April Direct Materials Direct Labor Applied overhead Total costs added in April Job 307 37,000 15,000 7,500 Job 308 April Total $ 66,000 40,000 20,000 $ 0 140,000 215,000 115,000 470,000 105,000 152,000 103,000 360,000 0 245,000 367,000 218,000 830,000 $ 0 Total costs (April 30) Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in: ! 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 $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $22,000; factory rent, $38,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct labor Applied overhead Costs during April Direct materials $ 29,000 $ 37,000 25,000 12,500 15,000 7,500 Direct materials 140,000 215,000 $115,000 Direct labor 105,000 152,000 103,000 Applied overhead ? ? ? Finished Finished In Status on April 30 (sold) (unsold) process Problem 15-1A Part 2 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. 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 $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $22,000; factory rent, $38,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct labor Applied overhead Costs during April Direct materials $ 29,000 25,000 12,500 $ 37,000 15,000 7,500 Direct materials 140,000 215,000 Direct labor 105,000 152,000 $115,000 103,000 Applied overhead ? ? ? Finished Status on April 30 (sold) Finished (unsold) In process Problem 15-1A Part 3 3. Prepare a schedule of cost of goods manufactured. MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs 0 Total cost of work in process 0 Cost of goods manufactured $ 0 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 $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $22,000; factory rent, $38,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct labor Applied overhead Costs during April Direct materials Direct materials $ 29,000 25,000 12,500 $ 37,000 15,000 7,500 140,000 215,000 $115,000 Direct labor 105,000 152,000 103,000 Applied overhead ? ? ? Finished Status on April 30 (sold) Finished (unsold) In process Problem 15-1A Part 4 4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. Required 4A Required 4B Show how to present the inventories on the April 30 balance sheet. Raw materials Inventories Work in process Finished goods Total inventories