Required information The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $85.000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $383,000. Overhead costs incurred in Aprilare: indirect materials, $59,000; indirect labor $24,000; factory rent, $31,000; factory utilities, $21,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 30,000 23,000 11,500 $ 44,000 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 30 210,000 153,000 $ 105,000 103,000 132,000 103,000 7 Pinished (sold) Finished (unsold) process 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 $ 44.000 74.000 From March Direct Materials Direct Labor Applied overhead Beginning goods in process For April Direct Materials 30,000 23,000 11,500 41.000 18,000 9.000 20,500 105.000 447 000 132,000 103.000 210,000 153,000 Direct Labor 103.000 359.000 235,000 363,000 208.000 806.000 Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in: Finished (sold) Finished (unsold) in process 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 2 3 4 5 6 7 8 ..... 13 Record the entry for Materials purchases (on credit). Note: Enter debits before credits Transaction General Journal Debit Credit Journal entry worksheet | 1 2 3 4 5 6 7 8 ..... Record the direct materials used in production. Note: Enter debits before credits. General Journal Debit Credit Transaction b. Journal entry worksheet 3 4 5 6 7 8 ..... 13 Record the Direct labor paid and assigned to Work in Process Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet Record the entry for Overhead costs applied to Work in Process Inventory. Note: Enter debits before credits Transaction General Journal Debit Credit Journal entry worksheet Record the cost of factory utilities, paid in cash. Note: Enter debits before credits. General Journal Debit Credit Transaction f(2) Journal entry worksheet Record depreciation on factory equipment. Note: Enter debits before credits. General Journal Debit Credit Transaction f(3). Journal entry worksheet Record the entry for transfer of Jobs 306 and 307 to Finished Goods Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet
