Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. 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). 2. Prepare journal entries for the month of April to record the following. 1. Materials purchases (on credit). 2. Direct materials used in production. 3. Direct labor paid and assigned to Work in Process Inventory. 4. Indirect labor paid and assigned to Factory Overhead. 5. Overhead costs applied to Work in Process Inventory. 6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) 7. Transfer of Jobs 306 and 307 to Finished Goods Inventory. 8. Cost of goods sold for Job 306. 9. Revenue from the sale of Job 306. 10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 3. Prepare a schedule of cost of goods manufactured. 4. Compute gross profit for April. Show how to present the inventories on the April 30 balance sheet. 5. Over- or underapplied overhead is closed to Cost of Goods Sold. Is this adjustment also posted to individual job cost sheets? 151A Part f Total manulacfuring costs and the costs assigned to each job "Eeuats 50:5 of direct labor cost. Part 2 Journal entries for April Part 3 MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Direct materials used Direct labor used Factory overhead applied Total manufacturing costs Add work in process March 31 (Jobs 306 \& 307) Total cost of work in process Deduct work in process, April 30 (Job 308) Cost of goods manufactured Part 4 Gross profit on the income statement for the month ended April 30 \begin{tabular}{l|l|} \hline Sales & \\ \hline Cost of goods sold & \\ \hline Gross profit & \\ \hline \end{tabular} Presentation of inventories on the April 30 balance sheet \begin{tabular}{l|l|} \hline Inventories & \\ \hline Raw materials & \\ \hline Work in process (Job 308) & \\ \hline Finished goods (Job 307) & \\ \hline Total inventories & \\ \hline & \\ \hline * Beginning raw materials inventory & \\ \hline Purchases & \\ \hline Direct materials used & \\ \hline Indirect materials used & \\ \hline Ending raw materials inventory & \\ \hline \end{tabular} Part 5
