Required Information Problem 15-2A (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. Job 308 Job 306 Job 307 $ 25,000 $ 39,000 25,000 15,000 12,500 7,500 Balances on March 31 Direct materials used (in March) Direct labor used (in March) overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 131,000 104,000 200,000 $ 115,000 153,000 103,000 ? 2 Finished In process (unsold) Finished (sold) Additional Information a. Raw Materials Inventory has a March 31 balance of $88,000. b. Raw materials purchases in April are $530,000, and total factory payroll cost in April is $386,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $24,000; and factory equipment depreciation, $60,000. d. Predetermined overhead rate is 50% of direct labor cost. Additional Information a. Raw Materials Inventory has a March 31 balance of $88,000. b. Raw materials purchases in April are $530,000, and total factory payroll cost in April is $386,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $24,000; and factory equipment depreciation, $60,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $670,000 cash in April. Problem 15-2A (Algo) Part 1 Required: 1. Determine the amount of overhead applied to each job in April. 306 307 308 April Total 0.50 0.50 0.50 0.50 Predetermined overhead rate Overhead applied 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). $ $ 25,000 25,000 12,500 39,000 15,000 7,500 March Direct materials Direct labor Overhead applied Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Total costs Status on April 30 April 30 cost included in 131,000 104,000 200,000 153,000 115,000 103,000 446,000 360,000 Finished (sold) Finished (uresold) In process 13 Problem 15-2A (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. 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, View transaction list Journal entry worksheet 1 2 3 4 5 7 11 . Record the entry for material purchased on credit. Required information View transaction list Journal entry worksheet 1 2 3 4 LO 5 67 8 11 SEO Record the entry for material purchased on credit. Note: Enter debits before credits Transaction General Journal Debit Credit a Record entry Clear entry View general Journal Required information Journal entry worksheet 2 Record the application of overhead costs. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal Required information Journal entry worksheet E. Record the actual other overhead costs incurred (Factory rent and utilities are paid in cash.) Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required information Journal entry worksheet Record the transfer of Jobs 306 and 307 to Finished Goods Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit h Record entry Clear entry View general Journal ! Required information Journal entry worksheet 1 ....4 5 6 7 DO 9 ... 11 Record the cost of goods sold for Job 306. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Regu Journal entry worksheet Problem 15-2A (Algo) Part 5 5-a. Compute gross profit for April. 5-b. Show how the three inventory accounts are reported on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Show how the three inventory accounts are reported on the April 30 balance sheet. Inventorios Raw materials Work in process Finished goods Total inventores