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 $85,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $24.000; factory rent, $36,000; factory utilities, $22,000; and factory equipment depreciation, $56,000. 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 306 Job 307 Job 308 $ 30,000 22,000 11,000 $ 43,000 16,000 8,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 138,000 103,000 ? Finished (sold) 205,000 151,000 ? Finished (unsold) $105,000 102,000 2 process 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 $ s 43,000 30,000 22,000 11,000 63.000 16,000 8,000 67,000 $ 73,000 38,000 19,000 $ 130,000 $ $ $ 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 138,000 103,000 205,000 151,000 105,000 102,000 448,000 356,000 0 241,000 356,000 207,000 804,000 Total costs (April 30) $ 0 Status on April 30 April 30 cost included in: Finished (sold) Cost of goods sold Finished (unsold) Finished goods inventory In process Work in process inventory Urnar innat antrierter the month at Anritternraratho snavn trancartiene Required information View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 550,000 - Raw materials inventory Accounts payable 550,000 2 b. 448,000 Work in process inventory Raw materials inventory 448,000 3 c. 356,000 Work in process inventory Cash 356,000 4 d. 24,000 Factory overhead Cash 24,000 5 e. Work in process inventory Factory overhead 6 f(1) 54,000 Factory overhead Raw materials inventory 54,000 7 f(2) 22,000 Factory overhead Cash 22,000 8 f(3) 56,000 Factory overhead Accumulated depreciation factory equipment 56,000 9 1(4). 36,000 Factory overhead Cash 36,000 10 g. Finished goods inventory Work in process inventory 11 h. Cost of goods sold Finished goods inventory 12 i. Cash 645,000 Sales 645,000 13 Cost of goods sold Factory overhead Problem 02-1A 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 $ 448,000 Direct labor used 356,000 Factory overhead applied Total manufacturing costs 804,000 Add: Work in process March 31 Total cost of work in process 804,000 Less: Work in process April 30 Cost of goods manufactured $ 804,000 Problem 02-1A Part 4 4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. Required 4A Required 4B Compute gross profit for April. Gross profit Problem 02-1A Part 4 4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. Required 4A Required 4B Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories FA 0
