Required information [The following information applies to the questions display

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Required information [The following information applies to the questions displayed belowj Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $387,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor, $27,000 factory rent, $37,000; factory utilities, $20,000; and factory equipment depreciation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 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 Direct labor Applied overhead $ 32,000 23,000 11,500 $ 37,000 15,000 7,500 Costs during April Direct materials Direct labor Applied overhead Status on April 30 139,000 104,000 200,000 $120,000 104,000 152,000 Finished (sold) Finished (unsold) In process a. Materials purchases (on credit) . Direct materials used in production 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.) . Transfer of Jobs 306 and 307 to Finished Goods Inventory . 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.) . Prepare journal entries for the month of April to record the above transactions

Explanation / Answer

Job 306 Job 307 Job 308 April 1) total From March Direct materials 32,000 37,000 0 69,000 Direct labor 23,000 15,000 0 38,000 applied overhead 11,500 7,500 0 19,000 Beginning goods in process 66,500 59,500 0 126,000 For April Direct materials 139,000 200,000 120,000 459,000 Direct labor 104,000 152,000 104,000 360,000 applied overhead 52000 76000 52000 180,000 Total costs added in April 295,000 428,000 276,000 999,000 total costs (April 30) 361,500 487,500 276,000 1,125,000 Satus on april 30 fin(sold) fin(unsold) in process April costs included in : COGS finished WIP goods inventory 2) TR General journal Debit Credit a. Raw materials inventory 580,000 Accounts payable 580,000 b. Work in process inventory 459,000 Raw materials inventory 459,000 c. Work in process inventory 387,000 Cash 387,000 d. Factory overhead 27,000 cash 27,000 e. Factory overhead 180,000 work in process inventory 180,000 f. Factory overhead 165,000 Raw materials inventory 51,000 Cash 57,000 Accumulated Depreciation 57,000 g. finished goods inventory 849,000 Work in process inventory 849,000 h. Cost of goods sold 361,500 finished goods inventory 361,500 i. Cash 640,000 sales 640,000 j. cost of goods sold 12,000 Factory overhead 12,000

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