Sanders Co.'s March 31 inventory of raw materials is $215,000. Raw materials purchases in April are $780,000, and factory payroll cost in April is $714,000. Overhead costs incurred in April are: indirect materials, $122,000; indirect labor, $104,000; factory rent, $123,000, factory utilities, $73,000, and factory equipment depreciation, $78.000. The predetermined overhead rate is 80% of direct labor cost. Job 306 is sold for $1,380,000 cash in April. Costs of the three jobs worked on in April follow. Job 386 Job 387 Job 3e8 $ 83,000 74,000 59,200 $116,000 45,000 36,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 189,000 193,000 101.000 215,000 $154,000 132,000 In Finished (sold) Finished (unsold) process Journal entry worksheet 2 3 4 5 6 7 8 ..... 13 a. Record the purchase of materials (on credit). Note: Enter debits before credits. Account Title Debit Credit Date Apr 30 1 1 2 3 4 5 6 7 8 ..... 13 b. Record direct materials used in production. Note: Enter debits before credits Date Account Title Debit Credit Apr 30 Dates: Mar 31 to: Apr 30 30 Sanders Company Trial Balance April 30, 2017 Credit Account Title Cash Accounts receivable, net Raw materials inventory Work in process inventory Factory Equipment Accumulated depreciation - Factory equipment Accounts payable Common stock, S5 par value Pald-in capital in excess of par - Common Retained earnings Total Debit 720,000 288,000 215,000 413,200 780,000 234.000 99,000 277.000 177,000 1,629,200 2,416,200 S 2 ,416,200 $ vulca. Mai Job 306 Job 307 Job 308 $ Beginning Work in Process (March costs) Direct materials Direct labor Applied overhead Total Beginning Work in Process inventory 83,000 74,000 59,200 216,200 116,000 45,000 36,000 197,000 Costs added in April Direct materials Direct labor Applied overhead Total costs added in April 189,000 $ 193,000 301,000 285,000 154,000 132,000 382,000 586,000 286,000 $ Total cost of jobs At the end of April, indicate which account should include each job's costs. Prepare a schedule of cost of goods manufactured for Sanders Company for the month of April. Dates: Mar 31 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 Requirement General Journal General Ledger Trial Balance Job Costs Cost of Goods Costa Mfg Gross Profit Select the accounts used in the calculation of gross profit. Enter the amount of gross profit for Sanders Company for the month of April. Dates: Mar 31 to: Apr 30 Gross profit
