Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 [The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $389,000. Overhead costs incurred in April are: Indirect materials, $58,000; Indirect labor, $30,000; factory rent. $38,000; factory utilities, $22,000; and factory equipment depreciation, $53.000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 cash in April. Costs of the three jobs worked on in April follow Job 386 Job 307 Job 308 Balances on March 31 Direct materials $ 27,000 $ 40,000 Direct labor 24,000 13,000 Applied overhead 12,000 6,500 Costs during April Direct materials 135,000 205,000 $100,000 Direct labor 104,000 151,000 104,000 Applied overhead Finished Status on April 30 Finished an (sold) (unsold) process 7 ? 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). Job 306 Job 307 Jab 308 April Total $ $ 27,000 24,000 12,000 40,000 13,000 6,500 $ 67,000 37,000 18,500 $ 0 From March Direct Materials Direct Labor Applied overhead Beginning goods in process For April Direct Materials Direct Labor Applied overhead Total costs added in April 135,000 104,000 205,000 151,000 100,000 104.000 440,000 359,000 0 239,000 356,000 204,000 799,000 Total costs (April 30) $ 0 Finished (sold) Finished (unsold) In process Status on April 30 April 30 cost included in: Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 13 > Record the entry for Materials purchases (on credit). Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 3 4 5 6 7 00 .... 13 > Record the direct materials used in production. Note: Enter debits before credits Transaction General Journal Debit Credit b. Record entry Clear entry View general Journal Journal entry worksheet Record the Direct labor paid and assigned to Work in Process Inventory. Note: Enter debits before credits Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 5 6 7 8 13 Record the indirect labor paid and assigned to Factory Overhead. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 13 Record the entry for Overhead costs applied to Work in Process Inventory. Note: Enter debits before credits. Debit General Journal Transaction Credit View general journal Record entry Clear entry Journal entry worksheet 1 2 3 4 5 7 8 ..... 13 Record the cost of indirect materials used. Note: Enter debits before credits General Journal Debit Credit Transaction f(1). Record entry Clear entry View general journal Journal entry worksheet Record the cost of factory utilities, paid in cash. Note: Enter debits before credits. General Journal Debit Credit Transaction f(2) Record entry Clear entry View general journal Journal entry worksheet
