[The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $25,000; factory rent, $37,000; factory utilities, $22,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $670,000 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		$	26,000			$	38,000
Direct labor			21,000				18,000
Applied overhead			10,500				9,000
Costs during April
Direct materials			133,000				215,000			$	115,000
Direct labor			102,000				151,000				101,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In 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).

2. Prepare journal entries for the month of April to record the above transactions.

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

3. Prepare a schedule of 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.

Job 306 Job 307 Job 308 April Total From March Direct Materials $ 26,000 38,000 64,000 39,000 Direct Labor 21,000 18,000 10,500 9,000 19,500 Applied overhead Beginning goods in process For April 0 Direct Materials 133,000 215,000 115,000 463,000 Direct Labor 102,000 151,000 101,000 354,000 0 Applied overhead Total costs added in April 235,000 366,000 216,000 817,000 Total costs (April 30) 0 Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in: MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured Inventories Raw materials Work in process Finished goods Total inventories