Marcelino Cos March 31 inventory of raw materials is 83000 R

Marcelino Co.\'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $367,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor $30,000: factory rent, $32,000; factory utilities, $25,000; and factory equipment depreciation, predetermined overhead rate is 50% of direct labor cost Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. 5 $59,000. The Balances on March 31 Direct materials Direct labor Applied overhead 27,000 39,000 18,000 9,000 25,000 12,500 Costs during April Direct materials Direct labor Applied overhead Status on April 30 139,000 102,000 210,000 $120,000 155,000 104,000 Finished Finished (sold) unold) 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)

Solution

a. b. Material purchases on credit $        530,000 Direct materials used in production $        469,000 c. (139000+210000+120000) Direct labor paid and assigned to WIP $        361,000 d. (102000+155000+104000) e. Indirect labor paid and assigned to factory overead $          30,000 Overhead cost applied to WIP $        180,500 f. (361000 x 50%) Actual overhead cost incurred $        203,000 g. (57000+30000+32000+25000+59000) Transfer of job 306 & 307 to FG $        865,000 h. (356500 + 508500) i. Cost of goods sold for job 306 $        356,500 j. Revenue from the sale of Job 306 $        635,000 Overhead(Underapplied) $          22,500 (203000-180500) a. Journal Entry Raw material inventory $        530,000 Accounts payable $        530,000 b. Work in Process Inventory $        469,000 Raw materials inventory $        469,000 c. Work in Process Inventory $        361,000 Factory Wages Payable $        361,000 d. Factory Overhead $          30,000 Factory Wages Payable $          30,000 e. Work in Process Inventory $        180,500 Factory Overhead $        180,500 f. Factory Overhead $          57,000 Raw Materials Inventory $          57,000 Factory Overhead $        116,000 Cash $          57,000 factory equipment depreciation $          59,000 g. Finished Goods Inventory $        865,000 Work in Process Inventory $        865,000 h. Cost of Goods Sold $        356,500 Finished Goods Inventory $        356,500 i. Accounts Receivable $        635,000 Sales $        635,000 j. Cost of Goods Sold $          22,500 Factory Overhead $          22,500 Job 306 Job 307 Job 308 Total Inventory of raw material on March 31 $        83,000 Balances on March 31 Raw material purchases in April          530,000 Direct materials $          27,000 $          39,000 Factory payroll cost in April          367,000 Direct labor               25,000              18,000 Overhead Costs Applied overhead               12,500                 9,000 Indirect Material            57,000 Costs during April Indirect labor            30,000 Direct materials            139,000            210,000          120,000          469,000 Factory rent            32,000 Direct labor            102,000            155,000          104,000          361,000 factory utilities            25,000 Applied overhead 50% of DLC               51,000              77,500            52,000          180,500 factory equipment depreciation            59,000 Total            356,500            508,500          276,000 Status on April 30 Finished Finished In Job 306 sold          635,000 (sold) (unsold) process