Sanders Company shows the following costs for three jobs worked on in April.

	Job 306	Job 307	Job 308
Balances on March 31
Direct materials (in March)	$ 34,400	$ 43,100
Direct labor (in March)	25,400	20,700
Applied overhead (March)	12,700	10,350
Costs during April
Direct materials	140,400	228,100	$ 102,700
Direct labor	95,800	163,500	107,700
Applied overhead	?	?	?
Status on April 30	Finished (sold)	Finished (unsold)	In process

Additional Information

Raw Materials Inventory has a March 31 balance of $93,500.

Raw materials purchases in April are $505,400, and total factory payroll cost in April is $392,700.

Actual overhead costs incurred in April are indirect materials, $52,700; indirect labor, $25,700; factory rent, $34,700; factory utilities, $21,700; and factory equipment depreciation, $56,400.

Predetermined overhead rate is 50% of direct labor cost.

Job 306 is sold for $660,000 cash in April.

Calculate the amount of overhead to be applied to each of the jobs worked on during April. Then, using the drop-downs, indicate which account in the ledger should include the job's costs as of April 30.

UnadjustedAdjustedPost-closing

	Job 306	Job 307	Job 308	April Total
Beginning Work in Process (March costs)
Direct materials	$34,400	$43,100
Direct labor	25,400	20,700
Overhead applied	12,700	10,350
Total Beginning Work in Process inventory	72,500	74,150		$146,650
Costs added in April
Direct materials	$140,400	$228,100	102,700	471,200
Direct labor	95,800	163,500	107,700	367,000
Overhead applied
Total costs added in April
Total cost of jobs
At the end of April, indicate which account should include each job's costs.

Journal Entry:

1

a. Record the purchase of materials (on credit).

2

b. Record the direct materials used.

3

c. Record direct labor used (and paid in cash) and assigned to Work in Process Inventory.

4

d. Record the indirect materials used and assigned to Factory Overhead.

5

e. Record the indirect labor used (and paid in cash) and assigned to Factory Overhead.

6

f. Record the overhead costs applied to Work in Process Inventory.

7

g. Record the actual other overhead costs incurred. (Factory rent and utilities are paid in cash.)

8

h. Record the transfer of Jobs 306 and 307 to Finished Goods Inventory.

9

i. Record the cost of goods sold for Job 306.

10

j. Record the revenue from the sale of Job 306 received in cash.

11

k. Record the close underapplied or overapplied overhead to the Cost of Goods Sold account.

Prepare a schedule of cost of goods manufactured for Sanders Company for the month of April.

UnadjustedAdjustedPost-closing

SANDERS COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Total manufacturing costs added during April
Total cost of work in process

Select the accounts used in the calculation of gross profit. Enter the amount of gross profit for Sanders Company for the month of April.

UnadjustedAdjustedPost-closing

Gross profit