[The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April.

	Job 306	Job 307	Job 308
Balances on March 31
Direct materials used (in March)	$ 25,000	$ 37,000
Direct labor used (in March)	20,000	15,000
Overhead applied (March)	10,000	7,500
Costs during April
Direct materials used	138,000	220,000	$ 105,000
Direct labor used	101,000	151,000	101,000
Overhead applied	?	?	?
Status on April 30	Finished (sold)	Finished (unsold)	In process

Additional Information

Raw Materials Inventory has a March 31 balance of $88,000.

Raw materials purchases in April are $500,000, and total factory payroll cost in April is $379,000.

Actual overhead costs incurred in April are indirect materials, $55,000; indirect labor, $26,000; factory rent, $33,000; factory utilities, $22,000; and factory equipment depreciation, $55,000.

Predetermined overhead rate is 50% of direct labor cost.

Job 306 is sold for $640,000 cash in April.

2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31).

[The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April.

	Job 306	Job 307	Job 308
Balances on March 31
Direct materials used (in March)	$ 25,000	$ 37,000
Direct labor used (in March)	20,000	15,000
Overhead applied (March)	10,000	7,500
Costs during April
Direct materials used	138,000	220,000	$ 105,000
Direct labor used	101,000	151,000	101,000
Overhead applied	?	?	?
Status on April 30	Finished (sold)	Finished (unsold)	In process

Additional Information

Raw Materials Inventory has a March 31 balance of $88,000.

Raw materials purchases in April are $500,000, and total factory payroll cost in April is $379,000.

Actual overhead costs incurred in April are indirect materials, $55,000; indirect labor, $26,000; factory rent, $33,000; factory utilities, $22,000; and factory equipment depreciation, $55,000.

Predetermined overhead rate is 50% of direct labor cost.

Job 306 is sold for $640,000 cash in April.

a. Materials purchases (on credit). b. Direct materials used. c. Direct labor used (and paid in cash) and assigned to Work in Process Inventory. d. Indirect materials used and assigned to Factory Overhead. e. Indirect labor used (and paid in cash) and assigned to Factory Overhead. f. Overhead costs applied to Work in Process Inventory. g. Actual other overhead costs incurred (Factory rent and utilities are paid in cash.) h. Transfer of Jobs 306 and 307 to Finished Goods Inventory. i. Cost of goods sold for Job 306. j. Revenue from the sale of Job 306 received in cash. k. Close underapplied or overapplied overhead to the Cost of Goods Sold account. 3. Prepare journal entries for the month of April to record the above transactions.

1

Record the entry for material purchased on credit.

2

Record the direct materials used in production.

3

Record the direct labor (paid in cash).

4

Record the indirect materials used.

5

Record the indirect labor (paid in cash).

6

Record the application of overhead costs.

7

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

[The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April.

	Job 306	Job 307	Job 308
Balances on March 31
Direct materials used (in March)	$ 25,000	$ 37,000
Direct labor used (in March)	20,000	15,000
Overhead applied (March)	10,000	7,500
Costs during April
Direct materials used	138,000	220,000	$ 105,000
Direct labor used	101,000	151,000	101,000
Overhead applied	?	?	?
Status on April 30	Finished (sold)	Finished (unsold)	In process

Additional Information

Raw Materials Inventory has a March 31 balance of $88,000.

Raw materials purchases in April are $500,000, and total factory payroll cost in April is $379,000.

Actual overhead costs incurred in April are indirect materials, $55,000; indirect labor, $26,000; factory rent, $33,000; factory utilities, $22,000; and factory equipment depreciation, $55,000.

Predetermined overhead rate is 50% of direct labor cost.

Job 306 is sold for $640,000 cash in April.

4.. Prepare a schedule of cost of goods manufactured for the month end April 30.

MARCO COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Direct materials used	$463,000
Direct labor	353,000
Factory overhead applied	191,000
Total manufacturing costs	1,007,000
Add: Work in process inventory, beginning	55,000
Total cost of work in process	1,062,000
Less: Work in process inventory, ending	269,500
Cost of goods manufactured	$792,500