Required information Problem 2-2A (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 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) $ 25,000 $ 40,000 Direct labor used (in March) 23,000 17,000 Overhead applied (March) 11,500 8,500 Costs during April Direct materials used 135,000 205,000 $120,000 Direct labor used 104,000 154,000 104,000 Overhead applied 7 ? Finished Finished Status on April 30 (sold) (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $85,000 b. Raw materials purchases in April are $550,000, and total factory payroll cost in April is $392,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; Indirect labor, $30,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $57,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $695,000 cash in April. Problem 2-2A (Algo) Part 1 Required: 1. Determine the amount of overhead applied to each Job in April Answer is complete but not entirely correct. $ Direct labor Predetermined overhead rate Overhead applied 306 23,000 $ 0.50 50,000 $ 307 308 40,000 $ 104,000 0.50 0.50 77,000 $ 51,000 April Total $ 167,000 0.50 $ 550,000 $ Problem 2-2A (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 386 Job 387 Job 308 Balances on March 31 Direct materials used in March) $ 25,000 $ 40,000 Direct labor used in March) 23,600 17,000 Overhead applied (March) 11.500 8,5ee Costs during April Direct materials used 135,000 205,000 $ 120,000 Direct labor used 104,000 154,000 104,000 Overhead applied Finished Finished Status on April 30 (sold) (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $85,000 b. Raw materials purchases in April are $550,000, and total factory payroll cost in April is $392,000. c. Actual overhead costs incurred in April are Indirect materials, $59,000; Indirect labor, $30,000; factory rent, $35,000, factory utilities, $22,000, and factory equipment depreciation, $57,000 d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $695,000 cash in April. Problem 2-2A (Algo) Part 2 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). Job 300 Job 307 Job 308 April Total 5 $ 25,000 23,000 11,500 40,000 17.000 8.500 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 135,000 104,000 205,000 154,000 120,000 104,000 460,000 362,000 Finished (sold) Finished (unsold) In process RE Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 135,000 104,000 ? Finished (sold) 205,000 $ 120,000 154,000 104,000 ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $85,000 b. Raw materials purchases in April are $550,000, and total factory payroll cost in April is $392,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; Indirect labor, $30,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $57,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $695,000 cash in April. Problem 2-2A (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. 9. Actual other overhead costs incurred (Factory rent and utilities are paid in cash) h. Transfer of Jobs 306 and 307 to Finished Goods Inventory 1. 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 6 > 7 Go 11 Record the entry for material purchased on credit. Note: Enter debits before credits Transaction General Journal Debit Credit