Required information Problem 2-1A Production costs computed and recorded; report

Question

Required information Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [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 $510,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $21,000; factory rent, $30,000; 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 $670,000 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 31,000 24,000 12,000 44,000 16,000 8,000 Costs during April 131,000 104,000 220,000 $105,000 105,000 Direct materials Direct labor Applied overhead Status on April 30 155,000 Finished (sold) Finished (unsold) process

Explanation / Answer

a Raw materials Inventory 510000 Accounts Payable 510000 b Work in progress inventory 456000 Raw materials Inventory 456000 c Work in progress inventory 364000 Csah 364000 d Factory Overhead 21000 Cash 21000 e Work in progress inventory 182000 Factory Overhead 182000 f(1) Factory Overhead 53000 Raw materials Inventory 53000 f(2) Factory Overhead 24000 Cash 24000 f(3) Factory Overhead 57000 Accumulated depriciation - Factory Equipment 57000 f(4) Factory Overhead 30000 Cash 30000 g Finished goods inentory 874500 Work in progress inentory 874500 h Cost of goods sold 354000 Finished goods inentory 354000 i Cash 670,000 Sales 670,000 j Cost of goods sold 3,000 Factory Overhead 3,000 1 For March Job 306 Job 307 Job 308 April total Direct material 31000 44000 75000 Direct labor 24000 16000 40000 Applied Overhead 12000 8000 20000 Beginning goods in process 67000 68000 0 135000 For April Direct material 131000 220000 105000 456000 Direct labor 104000 155000 105000 364000 Applied Overhead 50% of DL 52000 77500 52500 182000 Total Cost added in april 287000 452500 262500 1002000 Total Cost April 30 354000 520500 262500 1137000 Status Finished (Sold) Finished (Unsold) Inprcess Apr 30 Cost included in Cost of goods sold Finished goods inentory Work in progress j. Factory Overhead   Overhead applied to jobs 182,000   Overhead incurred   Indirect materials 53,000   Indirect labor 21,000   Factory rent 30,000   Factory utilities 24,000   Factory equip. depreciation. 57,000 185,000   Underapplied overhead 3,000 Marcelino Company Schedule Of Cost Of Goods Manufactured For the Month Ended April 30 Direct Material Used 456000 Direct Labor Used 364000 Factory Overhead applied 182000 Total Manufacturing Costs 1002000 Add:Work in progress Mar 31 135000 Total Cost of Work in process 1137000 Less:Work in progress April 30 262500 Cost of goods manufactured 874500 Sales 670,000 Less: Cost of goods sold 357,000 Gross Profit 313,000 Show how to present the inventories on the April 30 balance sheet. Raw Materials 83000+510000-456000-53000 84000 Work in progress 262500 Finished Goods 520500 Total Inventories 867000

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