[The following information applies to the questions displayed below.] Marcelino

Question

[The following information applies to the questions displayed below.]

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.

2. Prepare journal entries for the month of April to record the above transactions.

Record the entry for Materials purchases (on credit).

Record the direct materials used in production.

Record the Direct labor paid and assigned to Work in Process Inventory.

Record the indirect labor paid and assigned to Factory Overhead.

Record the entry for Overhead costs applied to Work in Process Inventory.

Record the cost of indirect materials used.

Record the cost of factory utilities, paid in cash.

Record depreciation on factory equipment.
Record the cost of factory rent, paid in cash.

Record the entry for transfer of Jobs 306 and 307 to Finished Goods Inventory.

Record the Cost of goods sold for Job 306.

Record the revenue from the sale of job 306

Record the entry for assignment of any underapplied or overapplied overhead to the Cost of Goods Sold.

Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 29,000 $ 35,000 Direct labor 20,000 18,000 Applied overhead 10,000 9,000 Costs during April Direct materials 135,000 220,000 $ 100,000 Direct labor 85,000 150,000 105,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process

Explanation / Answer

2) TR General journal Debit Credit a. Raw materials inventory 500,000 Accounts payable 500,000 b. Work in process inventory 455,000 Raw materials inventory 455,000 c. Work in process inventory 340,000 Cash 340,000 d. Factory overhead 23,000 cash 23,000 e. Factory overhead 170,000 work in process inventory 170,000 f. Factory overhead 50,000 Raw materials ivnentory 50,000 Factory overhead 19,000 cash 19,000 Factory overhead 51,000 Accumulated depreciation 51,000 Factory overhead 32,000 cash 32,000 g. finished goods inventory 828,500 Work in process inventory 828,500 h. Cost of goods sold 321,500 finished goods inventory 321,500 i. Cash 635,000 sales 635,000 j. cost of goods sold 5,000 Factory overhead 5,000

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