Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7 Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
7 Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor. $26,000, factory rent, $39,000, factory utilities, $21,000, and factory equipment depreciation, $56,000. The predetermined overhead rate is 50 % of direct labor cost. Job 306 is sold for $690,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct $ 26,000 $ 39,000 materials Direct labor 22,000 13,000 Applied overhead 11,000 6, 500 Costs during April Direct 131,000 205,000 $115,000 materials Direct labor 103, 000 153, 000 103,000 Applied 2 overhead Status on Finished Finished In April 30 (sold) (unsold) process 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 Job 307 Job 308 April Total From Ma Direct Materials 26,000 39,000 $ 65,000 Direct Labor 22,000 13,000 35,000 Applied overhead 11,000 6,500 17,500 Beginning goods in process 0 For April Direct Materials 131,000 205,000 115,000 451,000 Direct Labor 103,000 153,000 103,000 359,000 Applied overhead C Total costs added in April 234,000 358,000 218,000 810,000 Total costs (April 30) 0 Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in 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 3 4 5 6 7 8. . 13 Record the entry for Materials purchases (on credit). Note: Enter debits before credits. 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 Total cost of work in process Cost of goods manufactured

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Social Media A Governance And Risk Guide

Authors: Peter R. Scott, J. Mike Jacka

1st Edition

1118061756, 978-1118061756

More Books

Students also viewed these Accounting questions