Question

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Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $20,000; factory rent, $32,000; factory utilities, $22,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $685,000 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		$	32,000			$	38,000
Direct labor			21,000				14,000
Applied overhead			10,500				7,000
Costs during April
Direct materials			136,000				200,000			$	105,000
Direct labor			101,000				153,000				105,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

rev: 03_15_2018_QC_CS-121813

Problem 15-1A Part 2

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

Answer 1

			Job 306	Job 307	Job 308	April
1)						total
From March
Direct materials			32,000	38,000	0	70,000
Direct labor			21,000	14,000	0	35,000
applied overhead			10,500	7,000	0	17,500
Beginning goods in process			63,500	59,000	0	122,500
For April
Direct materials			136,000	200,000	105,000	441,000
Direct labor			101,000	153,000	105,000	359,000
applied overhead			50500	76500	52500	179,500
Total costs added in April			287,500	429,500	262,500	979,500
total costs (April 30)			351,000	488,500	262,500	1,102,000
Satus on april 30			fin(sold)	fin(unsold)	in process
April costs included in :			COGS	finished	WIP
				goods
				inventory
2)	TR	General journal				Debit	Credit
	a.	Raw materials inventory				570,000
		Accounts payable					570,000
	b.	Work in process inventory				441,000
		Raw materials inventory					441,000
	c.	Work in process inventory				359,000
		Cash					359,000
	d.	Factory overhead				20,000
		cash					20,000
	e.	Work in process inventory				179,500
		Factory overhead					179,500
	f.	Factory overhead				165,000
		Raw materials inventory					59,000
		Cash					54,000
		Accumulated Depreciation					52,000
	g.	finished goods inventory				839,500
		Work in process inventory					839,500
	h.	Cost of goods sold				351,000
		finished goods inventory					351,000
	i.	Cash				685,000
		sales					685,000
	j.	cost of goods sold				5,500
		Factory overhead					5,500