Question

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 $381,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $24,000; factory rent, $33,000; factory utilities, $19,000; 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		$	29,000			$	45,000
Direct labor			24,000				18,000
Applied overhead			12,000				9,000
Costs during April
Direct materials			134,000				215,000			$	105,000
Direct labor			102,000				154,000				101,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

• Record the entry for Materials purchases (on credit).

Note: Enter debits before credits.

	Transaction General Journal Debit Credit a.

• Record the direct materials used in production.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit b.

• Record the Direct labor paid and assigned to Work in Process Inventory.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit c.

• Record the indirect labor paid and assigned to Factory Overhead.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit d.

• Record the entry for Overhead costs applied to Work in Process Inventory.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit e.

• Record the cost of indirect materials used.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit f(1).

• Record the cost of factory utilities, paid in cash.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit f(2).

• Record depreciation on factory equipment.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit f(3).

• Record depreciation on factory equipment.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit f(3).

Answer 1

		Debit	Credit
a	Raw materials inventory	600000
	Accounts Payable		600000
b	Work in Process inventory	454000		=134000+215000+105000
	Raw materials inventory		454000
c	Work in Process inventory	357000		=102000+154000+101000
	Cash		357000
d	Factory overhead	24000
	Cash		24000
e	Work in Process inventory	178500		=357000*50%
	Factory overhead		178500
f(1)	Factory overhead	52000
	Raw materials inventory		52000
f(2)	Factory overhead	19000
	Cash		19000
f(3)	Factory overhead	55000
	Accumulated depreciation -factory equipment		55000
f(4)	Factory overhead	33000
	Cash		33000