Byrnes Co.s March 31 inventory of raw materials is $125,000. Raw materials purchases in April are $630,000, and factory payroll cost in April is $480,000.
Byrnes Co.s March 31 inventory of raw materials is $125,000. Raw materials purchases in April are $630,000, and factory payroll cost in April is $480,000. Overhead costs incurred in April are: indirect materials, $101,000; indirect labor, $50,000; factory rent, $67,000; factory utilities, $37,000; and factory equipment depreciation, $60,000. The predetermined overhead rate is 70% of direct labor cost. Job 306 is sold for $870,000 cash in April. Costs of the three jobs worked on in April follow.
| | Job 306 | Job 307 | Job 308 | |
| Balances on March 31 | | | | | | | | | | | | |
| Direct materials | | $ | 47,000 | | | $ | 62,000 | | | | | |
| Direct labor | | | 38,000 | | | | 27,000 | | | | | |
| Applied overhead | | | 26,600 | | | | 18,900 | | | | | |
| Costs during April | | | | | | | | | | | | |
| Direct materials | | | 153,000 | | | | 247,000 | | | $ | 118,000 | |
| Direct labor | | | 121,000 | | | | 195,000 | | | | 114,000 | |
| Applied overhead | | | ? | | | | ? | | | | ? | |
| Status on April 30 | Finished (sold) | Finished (unsold) | | In process |
| |
Journal entry worksheet b. Record direct materials used in production. Credit Note: Enter debits before credits. Date Account Title Apr 30 Work in process inventory Factory overhead Wages payable Debit 430,000 50,000 480,000 Journal entry worksheet C. Record direct labor paid and assigned to Work in Process Inventory. Debit Credit Note: Enter debits before credits. Date Account Title Apr 30 Work in process inventory Factory overhead Raw materials inventory 518,000 101,000 619,000 Journal entry worksheet d. Record indirect labor paid and assigned to Factory Overhead. Note: Enter debits before credits. Credit Date Apr 30 Account Title Factory overhead Prepaid expenses Debit 104,000 104,000 Journal entry worksheet e. Record overhead costs applied to Work in Process Inventory. Debit Note: Enter debits before credits. Date Account Title Apr 30 Factory overhead Accumulated depreciation - Factory equipment Credit Journal entry worksheet f1. Record the cost of indirect materials used. Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Journal entry worksheet 2 3 4 5 6 7 8 13 > f2. Record the cost of factory utilities paid in cash. Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Journal entry worksheet f3. Record the depreciation on factory equipment. Note: Enter debits before credits. Date Account Title Debit Credit Apr 30 Journal entry worksheet 1 5 6 7 8 9 13 > f4. Record the cost of factory rent, paid in cash. Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Journal entry worksheet 9. Record the transfer of Jobs 306 and 307 to Finished Goods Inventory. Note: Enter debits before credits. Date Account Title Debit Credit Apr 30 Journal entry worksheet h. Record the cost of goods sold for Job 306. Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Journal entry worksheet i. Record the revenue from the cash sale of Job 306. Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Journal entry worksheet j. Record the assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 Requirement General Journal General Ledger Trial Balance Job Costs Cost of Goods Gross Profit Mfg Calculate the amount of overhead to be applied to each of the jobs worked on during April. Then, using the drop-downs, indicate which account in the ledger should include the job's costs as of April 30. Dates: Mar 31 to: Apr 30 Job 306 Job 307 Job 308 April Total Beginning Work in Process (March costs) Direct materials S 47,000 $ 62,000 Direct labor 38,000 27,000 Applied overhead 26,600 18,900 Total Beginning Work in Process inventory 111,600 107,900 S 219,500 S Costs added in April Direct materials Direct labor Applied overhead Total costs added in April 153,000 S 121,000 247,000 195,000 118,000 114,000 518,000 430,000 0 274,000 442,000 232,000 $ 948,000 Total cost of jobs At the end of April, indicate which account should include each job's costs. Cost of goods sold Finished goods inventory Work in process inventory Trial Dhane Coetafoorde Milf Requirement General Journal General Ledger Trial Balance Job Costs Cost of Goods Mfg Gross Profit to: Apr 30 Prepare a schedule of cost of goods manufactured for Byrnes Company for the month of April. Dates: Mar 31 BYRNES COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Direct materials used Direct labor used Factory overhead applied Total manufacturing costs added during April Add: Beginning work in process inventory Total cost of work in process Less: Ending work in process inventory Requirement General Journal General Ledger Trial Balance Job Costs Cost of Goods Mfg Gross Profit Select the accounts used in the calculation of gross profit. Enter the amount of gross profit for Byrnes Company for the month of April. Dates: Mar 31 to: Apr 30 0 Sales Cost of goods sold Gross profit 0
