Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marco Company shows the following costs for three jobs worked on in Status on April 3 0 Finished ( Sold ) Finished ( Unsold )

Marco Company shows the following costs for three jobs worked on in
Status on April 30Finished (Sold) Finished (Unsold) Work In Process
Required:
Determine the amount of DH applied to each job in April
Determine the total cost assigned to each job as of April 30(including
Prepare the journal entries for the month of April to record the
a. Material purchases on credit
b. Direct materials used
c. Direct labor used (and paid in CASH) and assigned to WIP
d. Indirect materials used and assigned to Factory H
e. Indirect labor used (and paid in cash) and assigned to Factory H
f. Factory DH costs A.PPLIED to WIP Inventory
g. Actual H costs incurred (factory rent and utilities paid in cash;
h. Transfer of jobs 306 and 307 to FG inventory
i. Cost of goods sold for Job 306
i. Revenue from the sale of Job 306 received in CASH
k. Close any underapplied or overapplied DH to the CoGS account
Prepare a schedule of cost of goods manufactured
Compute gross profit for April. Show how the inventory accounts are
Additional Information:
A. PMl Inventory has a March 31 balance of $80,000
B. RM purchases in April are $500,000; factory payroll cost in April is $363,000
C. Actual Qverhead in April: Indirect materials, $50,000; indirect labor, $23,000
Factory rent, $32,000; Factory utilities, $19,000; and factory depreciation, $51,000
D. Predetermined DH rate is 50% of direct labor costs
E. Job 306 is sold for $635,000CASH in April
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

11th Edition

0471448966, 978-0471448969

More Books

Students also viewed these Accounting questions

Question

What is meant by a green or sustainable strategy?

Answered: 1 week ago