Question

Problem 19-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4

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Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $27,000; 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		$	28,000			$	36,000
Direct labor			22,000				19,000
Applied overhead			11,000				9,500
Costs during April
Direct materials			134,000				200,000			$	115,000
Direct labor			103,000				151,000				102,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

rev: 03_15_2018_QC_CS-121813

Problem 19-1A Part 2

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

			Job 306	Job 307	Job 308	April
1)						total
From March
Direct materials			28,000	36,000	0	64,000
Direct labor			22,000	19,000	0	41,000
applied overhead			11,000	9,500	0	20,500
Beginning goods in process			61,000	64,500	0	125,500
For April
Direct materials			134,000	200,000	115,000	449,000
Direct labor			103,000	151,000	102,000	356,000
applied overhead			51500	75500	51000	178,000
Total costs added in April			288,500	426,500	268,000	983,000
total costs (April 30)			349,500	491,000	268,000	1,108,500
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				530,000
		Accounts payable					530,000
	b.	Work in process inventory				449,000
		Raw materials inventory					449,000
	c.	Work in process inventory				356,000
		Cash					356,000
	d.	Factory overhead				27,000
		cash					27,000
	e.	Factory overhead				178,000
		work in process inventory					178,000
	f.	Factory overhead				162,000
		Raw materials inventory					56,000
		Cash					54,000
		Accumulated Depreciation					52,000
	g.	finished goods inventory				840,500
		Work in process inventory					840,500
	h.	Cost of goods sold				349,500
		finished goods inventory					349,500
	i.	Cash				685,000
		sales					685,000
	j.	cost of goods sold				11,000
		Factory overhead					11,000