Question

Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor, $23,000; factory rent, $37,000; factory utilities, $21,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 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 $27,000 $45,000 Direct labor 23,000 14,000 Applied overhead 11,500 7,000 Costs during April Direct materials 137,000 210,000 $115,000 Direct labor 101,000 152,000 103,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process rev: 03_15_2018_QC_CS-121813 Materials purchases (on credit). Direct materials used in production. Direct labor paid and assigned to Work in Process Inventory. Indirect labor paid and assigned to Factory Overhead. Overhead costs applied to Work in Process Inventory. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) Transfer of Jobs 306 and 307 to Finished Goods Inventory. Cost of goods sold for Job 306. Revenue from the sale of Job 306. 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.

Answer 1

2
	General Journal	Debit	Credit
1	Raw materials inventory	590000
	Accounts Payable		590000
2	Work in Process inventory	462000
	Raw materials inventory		462000
3	Work in Process inventory	356000
	Cash		356000
4	Factory overhead	23000
	Cash		23000
5	Work in Process inventory	178000
	Factory overhead		178000
6	Factory overhead	51000
	Raw materials inventory		51000
7	Factory overhead	21000
	Cash		21000
8	Factory overhead	58000
	Accumulated depreciation- factory equipment		58000
9	Factory overhead	37000
	Cash		37000
10	Finished goods inventory	854000
	Work in Process inventory		854000
11	Cost of goods sold	350000
	Finished goods inventory		350000
12	Cash	650000
	Sales		650000
13	Cost of goods sold	12000
	Factory overhead		12000
Workings:
	Job 306	Job 307	Job 308	Total
From March
Direct Materials	27000	45000		72000
Direct Labor	23000	14000		37000
Applied overhead	11500	7000		18500
Beginning goods in process	61500	66000	0	127500
For April
Direct Materials	137000	210000	115000	462000
Direct Labor	101000	152000	103000	356000
Applied overhead	50500	76000	51500	178000
Total costs added in April	288500	438000	269500	996000
Total costs (April 30)	350000	504000	269500	1123500
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods inventory	Goods in process inventory
	Actual factory overhead:
	Indirect materials	51000
	Indirect labor	23000
	Factory rent	37000
	Factory utilities	21000
	Factory depreciation equipment	58000
	Actual factory overhead	190000
	Applied overhead	178000
	Underapplied overhead	12000