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. Additional Information a. Raw Materials Inventory has a March 31 balance of $81,600. b. Raw materials purchases in April are $504,000, and total factory payroll cost in April is $367,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $3 factory utilities, $20,000; and factory equipment depreciation, $52,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $639,000 cash in April. 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. 3. Prepare journal entries for the month of April to record the above transactions. 3. Prepare journal entries for the month of April to record the above transactions. Journal entry worksheet Record the revenue from the sale of Job 306 received in cash. Note: Enter debits before credits. 3. Prepare journal entries for the month of April to record the above transactions. Journal entry worksheet (1) 2 5 6 11 Record the transfer of Jobs 306 and 307 to Finished Goods Inventory. Note: Enter debits before credits. Journal entry worksheet wote: cricer peonts perure creurs. 3. Prepare journal entries for the month of April to record the above transactions. Journal entry worksheet Journal entry worksheet 1 2 3 Note: Enter debits before credits. Prepare journal entries for the month of April to record the above transactions. Journal entry worksheet 1) 2 8 11 Record the actual other overhead costs incurred (Factory rent and utilities are paid in cash.) Note: Enter debits before credits. Additional Information a. Raw Materials Inventory has a March 31 balance of $81,600 b. Raw materials purchases in April are $504,000, and total factory payroll cost in April is $367,000 c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $33,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $639,000 cash in April. Problem 2-2A (Algo) Part 3 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. 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 soid for Job 306. j. Revenue from the sale of Job 306 recelved in cash. k. Close underapplled or overapplied overhead to the Cost of Goods Sold account. 3. Prepare journal entries for the month of April to record the above transactions. Journal entry worksheet Record the entry to close underapplied or overapplied overhead to the Cost of Goods Sold account. Note: Enter debits before credits: Record the entry for material purchased on credit. Record the direct materials used in production. Record the direct labor (paid in cash). 4 Record the indirect materials used. 5 Record the indirect labor (paid in cash). 6 Record the application of overhead costs. 7 Record the actual other overhead costs incurred (Factory rent and utilities are paid in cash.) Note : O= journal entry has been entered Required information 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. Additional Information a. Raw Materials Inventory has a March 31 balance of $81,600. b. Raw materials purchases in April are $504,000, and total factory payroll cost in April is $367,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $33,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $639,000 cash in April
