Problem 15-1A Production costs computed and recorded; reports prepared LO C2, 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 $530,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $25,000; factory rent, $35,000; factory utilities, $23,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $685,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 28,000 23,000 11,500 $ 40,000 19,000 9,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead 137,000 104,000 ? 210,000 154,000 ? $ 115,000 102,000 ? Status on April 30 Finished (sold) Finished (unsold) In process Problem 15-1A 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). Job 306 Job 307 Job 308 April Total From March Direct Materials $ 28,000 $ 40,000 $ 68,000 Direct Labor 23,000 19,000 42,000 Applied overhead 11,500 9,500 21,000 131,000 $ 62,500 $ 68,500 $ Beginning goods in process For April Direct Materials 115,000 137,000 104,000 210,000 154,000 462,000 360,000 Direct Labor 102,000 Applied overhead 0 241,000 364,000 217,000 822,000 $ 0 Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in: Finished (sold) Finished (unsold) In process Problem 15-1A 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. View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a. Raw materials inventory Accounts payable 2 b. Work in process inventory Raw materials inventory 3 C. Work in process inventory Cash 4 4 d. Factory overhead Cash 5 e. Work in process inventory Factory overhead 6 f(1). Factory overhead Raw materials inventory 7 f(2) Factory overhead Cash 8 f(3). Factory overhead Accumulated depreciation-factory equipment 9 f(4). Factory overhead Cash 10 g. Finished goods inventory Work in process inventory 11 h. Cost of goods sold Finished goods inventory 12 i. Cash Sales j. Cost of goods sold Factory overhead Problem 15-1A Part 3 3. Prepare a schedule of cost of goods manufactured. MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Direct materials used Direct labor used Factory overhead applied Total manufacturing costs Add: Work in process March 31 Total cost of work in process Less: Work in process April 30 Cost of goods manufactured 0 0 $ 0 Problem 15-1A Part 4 4.1 Compute gross profit for April. Gross Profit 4.2 Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories $ 0