Required information 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 $82,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $387,000. Overhead costs incurred in April are: indirect materials, $51,000: indirect labor, $22,000; factory rent, $37,000; factory utilities, $20,000; and factory equipment depreciation, $55,000, The predetermined overhead rate is 50 % of direct labor cost. Job 306 is sold for $675,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 28,000 25,000 12,500 $ 44,000 Direct labor 16,000 Applied overhead Costs during April Direct naterials 8,000 138,000 200,000 155, 000 $115,000 105,000 Direct labor 105,000 Applied overhead. 7 Finished (sold) Finished In Status on April 30 (unsold) process Problem 02-1A 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 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 transactionns View transaction list View journal entry worksheet Debit Credit General Journal 2. Prepare journal entries for the month of April to record the above transactions. View transaction list View journal entry worksheet No Transaction General Jourmal Debit Credit 1 a. Raw materials inventory 530,000 Accounts payable 530,000 2 b Work in process inventory 453,000 Raw materials inventory 453,000 3 Work in process inventory 365,000 Cash 365,000 4 d. Factory overhead 182,500 Cash 182,500 5 Work in process inventory 182,500 A 182,500 Factory overhead f(1) Factory overhead 1,000,500 6 1,000,500 Raw materials inventory 7 f(2). Factory overhead Cash Factory overhead Accumulated depreciation-factory equipment f(3) f(4). Factory overhead Cash 182500 5 e. Work in process inventory 182,500 Factory overhead 182,500 f(1). Factory overhead 1,000,500 Raw materials inventory 1,000,500 7 f(2). Factory overhead Cash f(3). Factory overhead Accumulated depreciation-factory equipment f(4). Factory overhead Cash 10 Finished goods inventory Work in process inventory 11 h. Cost of goods sold Finished goods inventory 12 Cash Sales 13 Cost of goods sold Factory overhead 2 34 of 4 Prev
