1. Record the entry for material purchased on credit. 2. Record the direct materials used in production. 3. Record the direct labor (paid in cash). 4. Record the indirect materials used. 5. Record the indirect labor (paid in cash). 6. Record the application of overhead costs. 7. Record the actual other overhead costs incurred (Factory rent and utilities are paid in cash.) 8. Record the transfer of Jobs 306 and 307 to Finished Goods Inventory. 9. Record the cost of goods sold for Job 306. 10. Record the revenue from the sale of Job 306 received in cash. 11. Record the entry to close underapplied or overapplied overhead to the Cost of Goods Sold account.
Transcribed Image Text:3. Prepare Journal entries for the month of April to record the above transactions.
Vlew transaction Ilat
Journal entry worksheet
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Record the entry for material purchased on credit.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
Record entry
Clear entry
Vlew general journal
Transcribed Image Text:Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods
manufactured LO P1, P2, P3, P4
[The following information applies to the questions dllsplayed below.)
Marco Company shows the following costs for three Jobs worked on In April.
Job 306
Job 307
Job 308
Balances on March 31
Direct naterials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct naterials used
$ 29,800
21,000
10,50e
$ 42,00e
14,08e
7,000
$ 115,000
183,800
138,000
215,000
151,800
Direct labor used
103,000
Overhead applied
Finished
(unsold)
Finished
Status on April 30
In process
(sold)
Additional Information
a. Raw Materlals Inventory has a March 31 balance of $83.000.
b. Raw materlals purchases in April are $540.000, and total factory payroll cost in April is $380,000.
C. Actual overhead costs Incurred In April are Indirect materlals, $53.000; Indirect labor, $23.000; factory rent, $34,000:
factory utilitles, $23.000; and factory equipment depreclation, $57,000.
d. Predetermined overhead rate Is 50% of direct labor cost.
e. Job 306 is sold for $690,000 cash in Aprl.
Problem 2-2A (Algo) Part 3
a. Materlals purchases (on credit).
b. Direct materlals used.
c. Direct labor used (and pald in cash) and assigned to Work in Process Inventory.
d. Indirect materials used and assigned to Factory Overhead.
e. Indirect labor used (and pald in cash) and assigned to Factory Overhead.
f. Overhead costs applied to Work In Process Inventory.
g. Actual other overhead costs Incurred (Factory rent and utilitles are pald in cash.)
h. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
1. Cost of goods sold for Job 306.
J. Revenue from the sale of Job 306 recelved In cash.
k. Close underapplied or overapplied overhead to the Cost of Goods Sold account.
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
Expert Solution
Step 1
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Introduction:
The practice of tracking commercial transactions for the first time in the books of accounts is known as journal entry. Adjusting entries, having to close entries, and regular entries are examples of diary entries. Journal entries serve as the foundation for other accounting tasks such as ledger account preparation, trial balances, financial statements, and so on. . They are listed in chronological order based on the date of the incident. Adjusting entries, closing records, and regular entries are examples of diary entries.
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