Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $381,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor, $24,000; factory rent, $36,000; factory utilities, $22,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 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		$	29,000			$	37,000
Direct labor			21,000				17,000
Applied overhead			10,500				8,500
Costs during April
Direct materials			132,000				220,000			$	100,000
Direct labor			100,000				153,000				104,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

rev: 02_06_2017_QC_CS-77766

References

Section BreakProblem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4

1.

value: 11.00 points

Required information

Problem 2-1A 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).

References

eBook & Resources

Expanded tableLearning Objective: 02-C2 Explain job cost sheets and how they are used in job order costing.Learning Objective: 02-P3 Describe and record the flow of overhead costs in job order costing.

Problem 2-1A Part 1Learning Objective: 02-P1 Describe and record the flow of materials costs in job order costing.Learning Objective: 02-P4 Determine adjustments for overapplied and underapplied factory overhead.

Difficulty: 3 HardLearning Objective: 02-P2 Describe and record the flow of labor costs in job order costing.

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2.

value: 12.00 points

Required information

Problem 2-1A 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.

References

eBook & Resources

WorksheetLearning Objective: 02-C2 Explain job cost sheets and how they are used in job order costing.Learning Objective: 02-P3 Describe and record the flow of overhead costs in job order costing.

Problem 2-1A Part 2Learning Objective: 02-P1 Describe and record the flow of materials costs in job order costing.Learning Objective: 02-P4 Determine adjustments for overapplied and underapplied factory overhead.

Difficulty: 3 HardLearning Objective: 02-P2 Describe and record the flow of labor costs in job order costing.

Ask your instructor a questionCheck my work

3.

value: 4.00 points

Required information

Problem 2-1A Part 3

3.	Prepare a schedule of cost of goods manufactured.

References

eBook & Resources

WorksheetLearning Objective: 02-C2 Explain job cost sheets and how they are used in job order costing.Learning Objective: 02-P3 Describe and record the flow of overhead costs in job order costing.

Problem 2-1A Part 3Learning Objective: 02-P1 Describe and record the flow of materials costs in job order costing.Learning Objective: 02-P4 Determine adjustments for overapplied and underapplied factory overhead.

Difficulty: 3 HardLearning Objective: 02-P2 Describe and record the flow of labor costs in job order costing.

Ask your instructor a questionCheck my work

4.

value: 4.00 points

Required information

Problem 2-1A Part 4

4.1	Compute gross profit for April.

4.2	Show how to present the inventories on the April 30 balance sheet.