This is one question that has multiple parts on it.
Required information Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [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 $530,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $23,000; factory rent, $37,000; factory utilities, $24,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 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 Direct labor Applied overhead 31,000 21,000 10,500 $41,000 13,000 6,500 Costs during April Direct materials Direct labor Applied overhead Status on April 30 137,000 100,000 215,000 $105,000 103,000 153,000 Finished (unsold) Finished In process (sold) Problem 2-1A Part 1 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). Job 306 Job 307 Job 308 April Total From March Direct Materials Direct Labor Applied overhead 31,000 21,000 10,500 41,000 13,000 6,500 $ 72,000 34,000 17,000 Beginning goods in process For April 105,000 103,000 Direct Materials 137,000 215,000 457,000 Direct Labor 100,000 153,000 356,000 Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in 237,000 368,000 208,000 813,000 Finished (sold) Finished (unsold) In process Journal entry worksheet Record the entry for Materials purchases (on credit). Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet Record the direct materials used in production. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry Clear entry View general journal Journal entry worksheet Record the Direct labor paid and assigned to Work in Process Inventory. Note: Enter debits before credits Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet K123 4 5 678 .. . 13 Record the indirect labor paid and assigned to Factory Overhead Note: Enter debits before credits. Transaction General Journal Debit Credit d. Record entry Clear entry View general journal Journal entry worksheet 12 3457 8 13 Record the entry for Overhead costs applied to Work in Process Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Record entry Clear entry View general journal Journal entry worksheet K 12 3 4 5 6 78 13 Record the cost of indirect materials used. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 4 Record the cost of factory utilities, paid in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit f(2). Record entry Clear entry View general journal Journal entry worksheet K 23 4 5 6 78. :3 Record depreciation on factory equipment Note: Enter debits before credits. Transaction General Journal Debit Credit f(3). Record entry Clear entry View general journal Journal entry worksheet K 1 5678 9 10 13 Record the entry for transfer of Jobs 306 and 307 to Finished Goods Inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 7 10 11 13 Record the Cost of goods sold for Job 306 Note: Enter debits before credits. Transaction General Journal Debit Credit h. Record entry Clear entry View general journal Journal entry worksheet Record the entry for assignment of any underapplied or overapplied overhead to the Cost of Goods Sold. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Problem 2-1A Part 3 3. Prepare a schedule of cost of goods manufactured 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 Problem 2-1A Part 4 41 Compute gross profit for Aprll Gross Profit 4.2 Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories
