Required information 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 $520,000, and factory payroll cost in April is $389,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $23,000; and factory equipment depreciation, $54,000. 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 $ 27,000 21,000 10,500 $ 35,000 18,000 9,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead 215,000 154,000 138,000 103,000 ? Finished (sold) $110,000 103,000 ? In process Status on April 30 Finished (unsold) 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 27.000 21,000 10,500 58,500 35,000 18,000 9,000 62,000 $ 62,000 39,000 19,500 $ 120,500 | $ 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 51,500 292,500 351,000 215,000 154,000 77,000 446,000 $ 508,000 Finished (unsold) Finished goods inventory 110,000 103,000 51,500 264,500 $ 264,500 In process Work in process inventory 463,000 360,000 180,000 1,003,000 $ 1,123,500 Total costs (April 30) Status on April 30 April 30 cost included in: Finished (sold) Cost of goods sold 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 Journal entry worksheet ..... 13 Record the entry for Materials purchases (on credit). Note: Enter debits before credits. Transaction Credit General Journal Raw materials inventory Accounts payable Debit 520,000 520,000 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 ($ 463,000 Direct labor used 360,000 Factory overhead applied 180,000 Total manufacturing costs 1,003,000 Add: Work in process March 31 120,500 Total cost of work in process 1,123,500 Less: Work in process April 30 264,500 Cost of goods manufactured $ 859,000 Problem 15-1A Part 4 4.1 Compute gross profit for April. Gross Profit $ 302,000 4.2 Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories $