re https mireturninhttps3A2F2F 32Freg er 15 6 0 o Required i

re https mi?returnin-https%3A%2F%2F 3%2Freg er 15 6 0 o Required information 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 $580.000, and factory payroll cost in April is $378000. Overhead costs incurred in April are: indirect materials. $59.000, indirect labor 21000, factory rent. $32.000, factory utissies. $24,000, and factory equipment depreciation. $59.000. The overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in Apeil follow 25,000 42,000 Costs during ipr otrect saterlals Applied overhead Status on Api 139,000 25,000 $11e,0 s. Materiais purchases (on credn b. Direct materials used in production c. Direct labor paid and assigned to Work in Process inventory d Indirect labor peid and assigned to Factory Overhead e. Overhead costs applied to Work in Process nventory f. Actual overhead costs incurred, including indirect materils (Factory rent and ubities are paid in casn g. Transter of Jobs 306 and 307 s0 Finished Goods Inventory h. Cost of goods sold for Job 300 L Revenue fros the sale of Job 306 J Assignment of any underapolied or overapplied overhead to the Cost of Goods Sold account The amount is not matena 2 Prepare journal entries for the month of April so record the above transactions

Solution

Journal entries: S.no. Accounts title and explanation Debit $ Credit $ a. Raw material inventory Dr. 580000    Accounts payable 580000 b. Work in process inventory Dr 454000     Raw material inventory Account 454000 c. Work n process inventory Dr. 357000      Factory wages Account 357000 d. Manufacturing Overheads dr. 21000      Factory wages Account 21000 Factory Wages account dr. 378000      Cash account 378000 e. Work in process inventory Dr. 178500     Manufacturing Overheads 178500 f. Manufacturing overheads Dr. 174000     Raw material inventory Account 59000      Cash account (32000+24000) 56000     Accumulated depreciation 59000 g. Finished Goods inventory Dr. 849000     Work in process inventory Account 849000 h. Cost of goods sold Account Dr. 348500     Finished Goods inventory 348500 i. Accounts receivable Dr. 660000     Sales revenue 660000 j. Cost of goods sold Account Dr. 16500    Manufacturing overheads (174000+21000-178500) 16500 Req 3: Schedule of cost of Goods manufactured: Current cost of manufacturing material 454000 labour 357000 Overheads 178500 Total cost added during the period 989500 Add: Beginning WIP 124000 Total cost of goods in process 1113500 Less: Ending WIP 264500 Cost of goods manufactured 849000 Req 4: Gross profit: Sales revenue 660000 Less: Adjusted cost of goods sold 365000 (348500+16500) Gross profit: 295000 Req Raw material 147000 (80000+580000-454000-59000) WIP Job 308 264500 Finished Goods Job 307 500500