Problem 19-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4Skip to question [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 $540,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 cash in April. Costs of the three jobs worked on in April follow. Job 306Job 307Job 308 Balances on March 31 Direct materials $32,000 $37,000 Direct labor 25,000 16,000 Applied overhead 12,500 8,000 Costs during April Direct materials 138,000 215,000 $105,000 Direct labor 104,000 151,000 102,000 Applied overhead ? ? ? Status on April 30Finished (sold)Finished (unsold) In process 8f(3).Factory overheadAccumulated depreciation-factory equipment9f(4).Factory overheadCash10g.Finished goods inventoryWork in process inventory11h.Cost of goods soldFinished goods inventory12CashSales13j.Cost of goods soldFactory overhead NoTransactionGeneral JournalDebitCredit1a.Raw materials inventory540,000Accounts payable540,0002bWork in process inventoryRaw materials inventoryC.Work in process inventoryCash4d.Factory overheadCash5е.Work in process inventoryFactory overhead6f(1).Factory overheadRaw materials inventory7f(2).Factory overheadCash3.

Name: Problem 19-1A Production costs computed and recorded; reports prepared
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Description: Problem 19-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4Skip to question [The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materia

Solution: Computation of production cost incurred in april and total cost assigned to each job Particulars Job 306 Job 307 Job 308 Total From March: Direct material $32,000.00 $37,000.00 $0.00 $69,000.00 Direct labor $25,000.00 $16,000.00 $0.00 $41,000.00 Applied overhead (50% of direct labor) $12,500.00 $8,000.00 $0.00 $20,500.00 Beginning Goods in Process $69,500.00 $61,000.00 $0.00 $130,500.00 For April: Direct material $138,000.00 $215,000.00 $105,000.00 $458,000.00 Direct labor $104,000.00 $151,000.00 $102,000.00 $357,000.00 Applied overhead (50% of direct labor) $52,000.00 $75,500.00 $51,000.00 $178,500.00 Total Cost added in April $294,000.00 $441,500.00 $258,000.00 $993,500.00 Total Costs (April 30) $363,500.00 $502,500.00 $258,000.00 $1,124,000.00 Status on April 30 Finished (Sold) Finished (Unsold) In Process April 30 cost included in Cost of goods sold Finished goods inventory Work In Process Inventory Journal Entries - Marcelino Co Event Particulars Debit Credit a Raw material inventory Dr $540,000.00 To Accounts Payable $540,000.00 (To record purchase of raw material) b Work In Process Dr $458,000.00 To Raw material inventory $458,000.00 (To record raw material used in production) c Work In Process Dr $357,000.00 To Cash $357,000.00 (To record direct labor payment and assigment to production) d Factory overhead Dr $25,000.00 To Cash $25,000.00 (To record Indirect labor payment and assigment to factory overhead) e Work In Process Dr $178,500.00 To Factory Overhead $178,500.00 (To apply overhead to production) f1 Factory Overhead Dr $56,000.00 To Raw material inventory $56,000.00 (To record indirect material used) f2 Factory Overhead Dr $31,000.00 To Cash $31,000.00 (To record factory rent) f3 Factory Overhead Dr $23,000.00 To Cash $23,000.00 (To record factory utilities) f4 Factory Overhead Dr $52,000.00 To Accumulated Depreciation $52,000.00 (To record factory depreciation) g Finished goods inventory Dr $866,000.00 To Work In Process $866,000.00 (Being completed jobs transferred to finished goods) h Cost of goods sold Dr $363,500.00 To Finished goods inventory $363,500.00 (To record cost of goods sold for Job 306) i Cash Dr $630,000.00 To Sales Revenue $630,000.00 (To record sales of Job 306) j Cost of goods sold Dr $8,500.00 To Factory Overhead $8,500.00 (To close underapplied overhead to COGS)

Answered: Marcelino Co.'s March 31 inventory of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 19-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4

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[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 $540,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 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		$	32,000		$	37,000
Direct labor			25,000			16,000
Applied overhead			12,500			8,000
Costs during April
Direct materials			138,000			215,000	$	105,000
Direct labor			104,000			151,000		102,000
Applied overhead			?			?		?
Status on April 30	Finished (sold)	Finished (unsold)		In process

8
f(3).
Factory overhead
Accumulated depreciation-factory equipment
9
f(4).
Factory overhead
Cash
10
g.
Finished goods inventory
Work in process inventory
11
h.
Cost of goods sold
Finished goods inventory
12
Cash
Sales
13
j.
Cost of goods sold
Factory overhead

No
Transaction
General Journal
Debit
Credit
1
a.
Raw materials inventory
540,000
Accounts payable
540,000
2
b
Work in process inventory
Raw materials inventory
C.
Work in process inventory
Cash
4
d.
Factory overhead
Cash
5
е.
Work in process inventory
Factory overhead
6
f(1).
Factory overhead
Raw materials inventory
7
f(2).
Factory overhead
Cash
3.

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