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 $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. 3 Job 306 Job 307 Job 308 $ 29,000 20,000 10,000 $ 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 Status on April 30 135,000 85,000 7. Finished (sold) 220,000 150,000 7 Finished (unsold) $100,000 105,000 7 In process 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 $ $ 29,000 20,000 35,000 18,000 9,000 62,000 $ 64,000 38,000 19,000 $ 121,000 10,000 59,000 5 $ $ 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 Total costs (April 30) Status on April 30 April 30 cost included in: 135,000 85,000 220,000 150,000 100.000 105,000 455,000 340,000 0 220,000 370,000 205,000 795,000 0 $ Finished (sold) Finished (unsold) In process Record the entry for Materials purchases (on credit). Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal Record the direct materials used in production. Note: Enter debits before credits Transaction General Journal Debit Credit ces b. Record entry Clear entry View general Journal Record the Direct labor paid and assigned to Work in Process Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit C Record entry Clear entry View general journal Record the indirect labor paid and assigned to Factory Overhead. Note: Enter debits before credits. Transaction General Journal Debit Credit d. Record entry Clear entry View general Journal Record the entry for Overhead costs applied to Work in Process Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Record entry Clear entry View general journal Record the cost of indirect materials used. ht Note: Enter debits before credits. 3 Transaction General Journal Debit Credit nces Record entry Clear entry View general Journal Record the cost of factory utilities, paid in cash. Note: Enter debits before credits. General Journal Debit Credit Transaction f(2) Record entry Clear entry View general Journal Record depreciation on factory equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit f(3) Record entry Clear entry View general Journal Record the cost of factory rent, paid in cash. Note: Enter debits before credits General Journal Debit Credit Transaction f(4) Record entry Clear entry View general Journal Record the entry for transfer of Jobs 306 and 307 to Finished Goods Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 9 Record entry Clear entry View general journal Record the Cost of goods sold for Job 306. Note: Enter debits before credits. Transaction General Journal Debit Credit h. Record entry Clear entry View general journal Record the revenue from the sale of Job 306. Note: Enter debits before credits. Transaction General Journal Debit Credit ces Record entry Clear entry View general journal Record the entry for assignment of any underapplied or overapplied overhead to the Cost of Goods Sold. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal