Problem 15-2A (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 displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 $ 31,000 22,000 12,000 Problem 15-2A (Algo) Part 3 140,000 87,000 2 a. Materials purchases (on credit). b. Direct materials used. Finished (sold) Job 307 $ 37,000 20,000 11,000 225,000 155,000 Finished (unsold) Additional Information a. Raw Materials Inventory has a March 31 balance of $82,000. b. Raw materials purchases in April are $505,000, and total factory payroll cost in April is $368,000. c. Actual overhead costs incurred in April are Indirect materials, $51,250; Indirect labor. $24,250; factory rent, $33 Job 308 factory utilities, $20,250; and factory equipment depreciation, $52,250. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $640,000 cash In April. $ 105,000 110,000 2 In process e. Indirect labor used (and paid in-cash) and assigned to Factory Overhead. £ Overhead costs applied to Work In Process Inventory, c. Direct labor used (and paid in cash) and assigned to Work In Process Inventory. d. Indirect materials used and assigned to Factory Overhead. g. Actual other overhead costs Incurred (Factory rent and utilities are paid in cash.) h. Transfer of Jobs 306 and 307 to Finished Goods Inventory. L. Cost of goods sold for Job 306. J. Revenue from the sale of Job 306 received in cash. k. Close underapplied or overapplied overhead to the Cost of Goods Sold account. 3. Prepare journal entries for the month of April to record the above transactions.
Problem 15-2A (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 displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 $ 31,000 22,000 12,000 Problem 15-2A (Algo) Part 3 140,000 87,000 2 a. Materials purchases (on credit). b. Direct materials used. Finished (sold) Job 307 $ 37,000 20,000 11,000 225,000 155,000 Finished (unsold) Additional Information a. Raw Materials Inventory has a March 31 balance of $82,000. b. Raw materials purchases in April are $505,000, and total factory payroll cost in April is $368,000. c. Actual overhead costs incurred in April are Indirect materials, $51,250; Indirect labor. $24,250; factory rent, $33 Job 308 factory utilities, $20,250; and factory equipment depreciation, $52,250. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $640,000 cash In April. $ 105,000 110,000 2 In process e. Indirect labor used (and paid in-cash) and assigned to Factory Overhead. £ Overhead costs applied to Work In Process Inventory, c. Direct labor used (and paid in cash) and assigned to Work In Process Inventory. d. Indirect materials used and assigned to Factory Overhead. g. Actual other overhead costs Incurred (Factory rent and utilities are paid in cash.) h. Transfer of Jobs 306 and 307 to Finished Goods Inventory. L. Cost of goods sold for Job 306. J. Revenue from the sale of Job 306 received in cash. k. Close underapplied or overapplied overhead to the Cost of Goods Sold account. 3. Prepare journal entries for the month of April to record the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
![Problem 15-2A (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 displayed below.]
Marco Company shows the following costs for three Jobs worked on In April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
Additional Information
Problem 15-2A (Algo) Part 3
Job 386
Vw trachon lut
31,000
22,000
12,000
140,000
87,800
2
Finished
(sold)
Journal entry worksheet
濱溫着墨
a. Raw Materials Inventory has a March 31 balance of $82,000.
b. Raw materials purchases in April are $505,000, and total factory payroll cost in April is $368,000.
c. Actual overhead costs incurred in April are Indirect materials, $51,250; Indirect labor, $24,250: factory rent. $33,250;
factory utilities, $20,250; and factory equipment depreciation, $52,250.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $640,000 cash In April.
Job 307
$ 37,000
20,000
11,000
a. Materials purchases (on credit).
b. Direct materials used.
c. Direct labor used (and paid in cash) and assigned to Work In Process Inventory.
d. Indirect materials used and assigned to Factory Overhead.
e. Indirect labor used (and paid In-cash) and assigned to Factory Overhead.
£ Overhead costs applied to Work In Process Inventory.
(7) H
225,000
155,000
2
Finished
(unsold)
g. Actual other overhead costs Incurred (Factory rent and utilities are paid in cash.)
H. Transfer of Jobs 306 and 307 to Finished Good: Inventory.
1. Cost of goods sold for Job 306.
J. Revenue from the sale of Job 306 received in cash.
k. Close underapplied or overspplied overhead to the Cost of Goods Sold account.
3. Prepare Journal entries for the month of April to record the above transactions.
5
Job 308
$ 105,000
110,000
2
In process
Record the transfer of Jobs 306 and 307 to Finished Goods Inventory.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ed2cd10-5853-4f8b-bfb6-1b3d5f6781e8%2Fb83f773d-9453-4116-acf7-1873bffc3a0e%2Fjy7x3me_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 15-2A (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 displayed below.]
Marco Company shows the following costs for three Jobs worked on In April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
Additional Information
Problem 15-2A (Algo) Part 3
Job 386
Vw trachon lut
31,000
22,000
12,000
140,000
87,800
2
Finished
(sold)
Journal entry worksheet
濱溫着墨
a. Raw Materials Inventory has a March 31 balance of $82,000.
b. Raw materials purchases in April are $505,000, and total factory payroll cost in April is $368,000.
c. Actual overhead costs incurred in April are Indirect materials, $51,250; Indirect labor, $24,250: factory rent. $33,250;
factory utilities, $20,250; and factory equipment depreciation, $52,250.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $640,000 cash In April.
Job 307
$ 37,000
20,000
11,000
a. Materials purchases (on credit).
b. Direct materials used.
c. Direct labor used (and paid in cash) and assigned to Work In Process Inventory.
d. Indirect materials used and assigned to Factory Overhead.
e. Indirect labor used (and paid In-cash) and assigned to Factory Overhead.
£ Overhead costs applied to Work In Process Inventory.
(7) H
225,000
155,000
2
Finished
(unsold)
g. Actual other overhead costs Incurred (Factory rent and utilities are paid in cash.)
H. Transfer of Jobs 306 and 307 to Finished Good: Inventory.
1. Cost of goods sold for Job 306.
J. Revenue from the sale of Job 306 received in cash.
k. Close underapplied or overspplied overhead to the Cost of Goods Sold account.
3. Prepare Journal entries for the month of April to record the above transactions.
5
Job 308
$ 105,000
110,000
2
In process
Record the transfer of Jobs 306 and 307 to Finished Goods Inventory.
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