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Required information Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods manufactured LO P1, P2, P3, P4 Skip to question
Required information
Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods manufactured LO P1, P2, P3, P4
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[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) | $ 33,800 | $ 39,800 | |
Direct labor used (in March) | 24,800 | 22,800 | |
Overhead applied (March) | 14,800 | 13,800 | |
Costs during April | |||
Direct materials used | 147,000 | 232,000 | $ 112,000 |
Direct labor used | 89,800 | 162,000 | 117,000 |
Overhead applied | ?question mark | ?question mark | ?question mark |
Status on April 30 | Finished (sold) | Finished (unsold) | In process |
Additional Information
- Raw Materials Inventory has a March 31 balance of $84,800.
- Raw materials purchases in April are $512,000, and total factory payroll cost in April is $375,000.
- Actual overhead costs incurred in April are indirect materials, $53,000; indirect labor, $26,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $54,000.
- Predetermined overhead rate is 50% of direct labor cost.
- Job 306 is sold for $647,000 cash in April.
Problem 2-2A (Algo) Part 3
- Materials purchases (on credit).
- Direct materials used.
- Direct labor used (and paid in cash) and assigned to Work in Process Inventory.
- Indirect materials used and assigned to Factory Overhead.
- Indirect labor used (and paid in cash) and assigned to Factory Overhead.
- Overhead costs applied to Work in Process Inventory.
- Actual other overhead costs incurred (Factory rent and utilities are paid in cash.)
- Transfer of Jobs 306 and 307 to Finished Goods Inventory.
- Cost of goods sold for Job 306.
- Revenue from the sale of Job 306 received in cash.
- 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.
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