From March Direct Materials Direct Labor Applied overhead Beginning goods in process For April Direct Materials Direct Labor Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in Job 306 31,000 23,000 11,500 65,500 134,000 103,000 51,500 288,500 354,000 Finished (sold) Cost of goods sold Job 307 S 38,000 16,000 8,000 62,00 200,000 152,000 76,000 428,000 490,000 Finished (unsold) Finished goods inventory Job 308 2. Prepare journal entries for the month of April to record the above transactions. 0 110,000 100,000 50,000 260,000 260,000 In process Work in process inventory April Total 69,000 39,000 19.500 S 127.500 444,000 355,000 177,500 976,500 $ 1,104,000 Materials purchases (on credit). b. Direct materials 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. 1. 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.)
From March Direct Materials Direct Labor Applied overhead Beginning goods in process For April Direct Materials Direct Labor Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in Job 306 31,000 23,000 11,500 65,500 134,000 103,000 51,500 288,500 354,000 Finished (sold) Cost of goods sold Job 307 S 38,000 16,000 8,000 62,00 200,000 152,000 76,000 428,000 490,000 Finished (unsold) Finished goods inventory Job 308 2. Prepare journal entries for the month of April to record the above transactions. 0 110,000 100,000 50,000 260,000 260,000 In process Work in process inventory April Total 69,000 39,000 19.500 S 127.500 444,000 355,000 177,500 976,500 $ 1,104,000 Materials purchases (on credit). b. Direct materials 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. 1. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $510,000, and factory
payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $29,000;
factory rent, $36,000; factory utilities, $21,000, and factory equipment depreciation, $54,000. 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.
Balances on March 31
Direct materials
Direct labor
Applied overhead.
Costs during April
Direct materials.
Direct labor
Applied overhead
Status on April 30
Job 306
$ 31,000
23,000
11,500
134,000
103,000
?
Finished
(sold)
Job 307
$ 38,000
16,000
8,000
200,000
152,000
?
Finished
(unsold)
Job 308
$110,000
100,000
?
In
process
Transcribed Image Text:From March
Direct Materials
Direct Labor
Applied overhead
Beginning goods in process
For April
Direct Materials
Direct Labor
Applied overhead
Total costs added in April
Total costs (April 30)
Status on April 30
April 30 cost included in
Job 306
31,000
23,000
11,500
65,500
134,000
103,000
51,500
288,500
354,000
Finished (sold)
Cost of goods sold
S
Job 307
38,000
16,000
Materials purchases (on credit).
b. Direct materials
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.
8,000
62,00
200,000
152,000
76,000
428.000
490,000
Finished (unsold)
Finished goods inventory
Job 308
0
2. Prepare journal entries for the month of April to record the above transactions.
110,000
100,000
50,000
260,000
260,000
In process
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.
April Total
S
69,000
39,000
19,500
127,500
444,000
355,000
177,500
976,500
$ 1,104,000
h. Cost of goods sold for Job 306.
1. 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.)
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