Question
Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $366,000.
Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $366,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $30,000; factory rent, $39,000; factory utilities, $23,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 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 | $ | 28,000 | $ | 35,000 | ||||||||
Direct labor | 20,000 | 13,000 | ||||||||||
Applied overhead | 10,000 | 6,500 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 137,000 | 215,000 | $ | 115,000 | ||||||||
Direct labor | 103,000 | 154,000 | 103,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process |
Prepare journal entries for the month of April to record EACH transaction below.
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.)
*Enter debits before credits |
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