Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] Marcelino Co's March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is 389,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $30,000; factory rent, $32,000; factory utilities, $24,000; and factory equipment depreciation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 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 26,000 23,000 11,500 42,000 19,000 9,500 Costs during Apri.l 131,000 101,000 205,000 $110,000 105,000 Direct materials Direct labor Applied overhead Status on April 30 153,000 Finished (sold) Finished sold) In (un process

Explanation / Answer

Answer 1. Job 306 Job 307 Job 308 Total From March Direct Materials        26,000.00      42,000.00                     -            68,000.00 Direct Labor        23,000.00      19,000.00                     -            42,000.00 Applied Overhead - 50% of DL        11,500.00        9,500.00                     -            21,000.00 Beginning Work in process        60,500.00      70,500.00                     -          131,000.00 For April Direct Materials     131,000.00    205,000.00    110,000.00        446,000.00 Direct Labor     101,000.00    153,000.00    105,000.00        359,000.00 Applied Overhead - 50% of DL        50,500.00      76,500.00      52,500.00        179,500.00 Total costs added in April     282,500.00    434,500.00    267,500.00        984,500.00 Total Costs (April 30)     343,000.00    505,000.00    267,500.00    1,115,500.00 Status on April 30 Finished (Sold) Finished (Unsold) In Process April 30 cost included in Cost of Goods Sold Finished Goods Inventory Work In Proces Inventory Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Raw Materials Inventory    580,000.00 Accounts Payable    580,000.00 (record the Raw materials purchased) b. Work in Process    446,000.00 Raw Materials Inventory    446,000.00 (record the direct materials used in production) c. Work in Process    359,000.00 Salaries & Wages Payable    359,000.00 (record the direct labor used in production) d. Factory Overhead      30,000.00 Salaries Payable      30,000.00 (record the indirect labor used in production) e. Work in Process    179,500.00 Factory Overhead    179,500.00 (Record the factory overhead applied) f. Factory Overhead    171,000.00 Raw Materials Inventory      58,000.00 Cash      56,000.00 Accumulated Depreciation - Factory Equip.      57,000.00 (record the factory overhead incurred) g. Finished Goods Inventory    848,000.00    Work in Process    848,000.00 (record the Job No 306 & 307 completed) h. Cost of Goods Sold    343,000.00 Finished Goods Inventory    343,000.00 (record cost of goods sold Job-306) i. Cash    660,000.00 Sales Revenue    660,000.00 (record the JoB 306 sold) j. Cost of Goods Sold      21,500.00 Factory Overhead      21,500.00 (record the underapplied overhead) Actual Overhead = $58,000 + $30,000 + $32,000 + $24,000 + $57,000 Actual Overhead = $201,000 Actual Overhead    201,000.00 Applied Overhead    179,500.00 Underapplied Overhead      21,500.00 Answer 3. Schedule of Cost of Goods Manufactured Direct Materials: Raw Materials, Beginning Balance        83,000.00 Add: Raw Material Purchases     580,000.00 Total Raw Material Available     663,000.00 Less: Raw Material, Ending Balance (217,000.00) Raw Material used in Production        446,000.00 Direct Labor        359,000.00 Manufacturing Overhead Applied        179,500.00 Total Manufacturing Costs        984,500.00 Add: Work in Process, Beginning        131,000.00    1,115,500.00 Less: Work in Process, Ending     (267,500.00) Cost of Goods Manufactured        848,000.00 Answer 4. Sales     660,000.00 Adjusted Cost of Goods Sold - $343,000 + $21,500     364,500.00 Gross Profit     295,500.00 Answer 4.2 Balance Sheet (Partial) At April 30. Assets Current Assets Raw Material - $217,000 - $58,000     159,000.00 Work in Process - Job 308     267,500.00 Finished Goods - Job 307     505,000.00        931,500.00

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