Required information Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $27,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 29,000 23,000 11,500 $ 40,000 17,000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead 137,000 103,000 205,000 150,000 $105,000 103,000 ? Status on April 30 Finished (sold) Finished (unsold) In process Problem 02-1A 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 $ 69,000 29,000 23,000 11,500 40,000 17,000 40,000 8,500 20,000 Direct Materials Direct Labor Applied overhead Beginning goods in process For April it Materials Direct Materials 205,000 447,000 137,000 103,000 105,000 103,000 150,000 356,000 Direct Labor Applied overhead Total costs added in April Total costs (April 30) Finished (sold) Finished (unsold) In process Status on April 30 April 30 cost included in: Problem 02-1A Part 2 a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory. f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. Revenue from the sale of Job 306. j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 2. Prepare journal entries for the month of April to record the above transactions. View transaction list Journal entry worksheet Required information Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $27,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 29,000 23,000 11,500 $ 40,000 17,000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead 137,000 103,000 205,000 150,000 $105,000 103,000 ? Status on April 30 Finished (sold) Finished (unsold) In process Problem 02-1A 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 $ 69,000 29,000 23,000 11,500 40,000 17,000 40,000 8,500 20,000 Direct Materials Direct Labor Applied overhead Beginning goods in process For April it Materials Direct Materials 205,000 447,000 137,000 103,000 105,000 103,000 150,000 356,000 Direct Labor Applied overhead Total costs added in April Total costs (April 30) Finished (sold) Finished (unsold) In process Status on April 30 April 30 cost included in: Problem 02-1A Part 2 a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory. f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. Revenue from the sale of Job 306. j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 2. Prepare journal entries for the month of April to record the above transactions. View transaction list Journal entry worksheet