Question
Required information [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in
Required information
[The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $28,000; factory rent, $38,000; factory utilities, $23,000; and factory equipment depreciation, $60,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 | Job 307 | Job 308 | ||||||||||
Balances on March 31 | ||||||||||||
Direct materials | $ | 31,000 | $ | 37,000 | ||||||||
Direct labor | 23,000 | 16,000 | ||||||||||
Applied overhead | 11,500 | 8,000 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 134,000 | 205,000 | $ | 100,000 | ||||||||
Direct labor | 103,000 | 153,000 | 101,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
- Materials purchases (on credit).
- Direct materials used in production.
- Direct labor paid and assigned to Work in Process Inventory.
- Indirect labor paid and assigned to Factory Overhead.
- Overhead costs applied to Work in Process Inventory.
- Actual overhead costs incurred, including indirect materials. (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.
- Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
- Record the direct materials used in production.
Note: Enter debits before credits.
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- Record the direct materials used in production.
Note: Enter debits before credits.
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etc.
3. Prepare a schedule of the cost of goods manufactured.
4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet.
Compute gross profit for April.
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Show how to present the inventories on the April 30 balance sheet.
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