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Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials

Marco Company shows the following costs for three jobs worked on in April.

Job 306

Job 307

Job 308

Balances on March 31

Direct materials used (in March)

$31,000

$43,000

Direct labor used (in March)

23,000

16,000

Overhead applied (March)

11,500

8,000

Costs during April

Direct materials used

134,000

205,000

$100,000

Direct labor used

105,000

150,000

104,000

Overhead applied

?

?

?

Status on April 30

Finished (sold)

Finished (unsold)

In process

Additional Information

Raw Materials Inventory has a March 31 balance of $90,000.

Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000.

Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $27,000; factory rent, $32,000; factory utilities, $21,000; and factory equipment depreciation, $53,000.

Predetermined overhead rate is 50% of direct labor cost.

Job 306 is sold for $640,000 cash in April.

Required: 1. Determine the amount of overhead applied to each job in April. 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). 3.Prepare journal entries for the month of April to record the below transactions.

a. Materials purchases (on credit). b. Direct materials used. c. Direct labor used (and paid in cash) and assigned to Work in Process Inventory. d. Indirect materials used and assigned to Factory Overhead. e. Indirect labor used (and paid in cash) and assigned to Factory Overhead. f. Overhead costs applied to Work in Process Inventory. g. Actual other overhead costs incurred (Factory rent and utilities are paid in cash.) h. Transfer of Jobs 306 and 307 to Finished Goods Inventory. i. Cost of goods sold for Job 306. j. Revenue from the sale of Job 306 received in cash. k. Close underapplied or overapplied overhead to the Cost of Goods Sold account.

4.Prepare a schedule of cost of goods manufactured for the month end April 30.

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