Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods manufactured LO P1, P2, P3, P4 The following information applies to the questions displayed below) Marco Company shows the following costs for three jobs worked on in April Job 306 306 307 Job 38 Balances on March 33 Direct materials used in March) $ 31,000 $ 35,000 Direct labor used in March) 21,000 16,000 Overhead applied (March) 10,500 8,000 Costs during April Direct materials used 136,000 210,000 $ 115,000 Direct labor used 102,000 152,000 104,000 Overhead applied 2 2 Finished Finished Status on April 30 In process (sold) Cunsold) Additional Information a. Raw Materials Inventory has a March 31 balance of $82,000 b. Raw materials purchases in April are $570,000, and total factory payroll.cost in April is $388.000 c. Actual overhead costs incurred in April are Indirect materials. 557.000 indirect labor, $30,000; factory rent, $35,000; factory utilities, $23,000, and factory equipment depreciation, $58,000, d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $640,000 cash in April. Problem 2-2A (Algo) Part 1 Required: 1. Determine the amount of overhead applied to each job in April. 306 307 308 April Total $ 0 0.50 Direct labor Predetermined overhead rate 0.50 0.50 0.50 Hannlind Problem 2-2A (Algo) Part 2 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31) Job 306 Job 307 Job 308 April Total $ $ 31,000 21,000 10,500 35.000 16,000 8,000 March Direct materials Direct labor Overhead applied Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Total costs Status on April 30 April 30 cost included in 136.000 102,000 210.000 152,000 115,000 104.000 461,000 358,000 Finished (sold) Finished (unsold) In process o. 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. 1. Overhead costs applied to Work in Process Inventory 9. 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. 3. Prepare journal entries for the month of April to record the above transactions: View transaction ist Journal entry worksheet Record the entry for material purchased on credit Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 4. Prepare a schedule of cost of goods manufactured for the month end April 30. MARCO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured 5-a. Compute gross profit for April. 5-b. Show how the three inventory accounts are reported on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Compute gross profit for April. Gross profit