Question

In: Accounting

Required information Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3,...

Required information

Problem 2-1A Production costs computed and recorded; reports prepared LO C2, 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 $540,000, and factory payroll cost in April is $364,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $670,000 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 $ 30,000 $ 36,000
Direct labor 25,000 14,000
Applied overhead 12,500 7,000
Costs during April
Direct materials 133,000 210,000 $ 100,000
Direct labor 105,000 150,000 101,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process

Problem 2-1A 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.)

Solutions

Expert Solution

Problem 2-1A Part 2 :

Date Accounts Titles Debit $ Credit $
a Material 540000
AP 540000
(materials purchases on account)
b WIP Inventory 443000
Material 443000
(being Direct material used in production)
c Payroll expenses 356000
Cash 356000
(being direct labor paid)
c WIP Inventory 356000
Payroll expenses 356000
(being direct labor assigned to WIP)
d Payroll expenses 26000
Cash 26000
d Manufacturing Overhead 26000
Payroll expenses 26000
e WIP Inventory 178000
Manufacturing Overhead 178000
(50% of DLC)
f Factory rent 38000
Factory utilities 19000
Indirect material 59000
Factory Depreciaton 58000
Material 59000
Depreciaton equipment 58000
Cash 57000
(being actual overhead costs incurred )
g Finished Goods Inventory 850000
WIP inventory 850000
(Job 306 = 358000 & Job 307 = 492000)
h Cost of Goods sold 358000
Finished Goods Inventory 358000
i AR 670000
Sales revenue 670000
j Cost of Goods sold 22000
Manufacturing Overhead 22000
(Actual 200000 - Applied 178000 - Under-applied )

Related Solutions

Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3,...
Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $27,000; factory rent, $31,000; factory utilities, $21,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50%...
Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3,...
Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $27,000; factory rent, $31,000; factory utilities, $21,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50%...
Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $25,000; factory rent, $36,000; factory utilities, $22,000; and factory equipment depreciation, $60,000. The predetermined overhead rate is 50% of direct...
Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 2-1A Production costs computed and recorded; reports prepared LO C2, 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 $540,000, and factory payroll cost in April is $364,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct...
Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $23,000; factory rent, $38,000; factory utilities, $23,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $27,000; factory rent, $39,000; factory utilities, $20,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct...
Problem 19-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 19-1A Production costs computed and recorded; reports prepared LO C2, 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 $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...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $367,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $29,000; factory rent, $34,000; factory utilities, $22,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $27,000; factory rent, $38,000; factory utilities, $20,000; and factory equipment depreciation, $60,000. The predetermined overhead rate is 50% of direct...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $27,000; factory rent, $32,000; factory utilities, $20,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT