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Required Information [The following information applies to the questions display

ID: 2451997 • Letter: R

Question

Required Information [The following information applies to the questions displayed below.J Ciolino Co.'s March 31 inventory of raw materials is $130,000. Raw materials purchases in April are $450,000, and factory payroll cost in April is $237,000. Overhead costs incurred in April are: indirect materials, $30,000; indirect labor, $14,000; factory rent, $17,000; factory utilities, $11,000; and factory equipment depreciation, $20,200. The predetermined overhead rate is 40% of direct labor cost. Job 306 is sold for $390,000 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 $8,000 13,000 5,200 $22,000 14,000 5,600 Costs during April $ 75,000 Direct materials Direct labor Applied overhead 105,000 170,000 41,000 62,000 120,000 Status on April 30 Finished (sold) Finished (unsold) n process

Explanation / Answer

Date

Particulars

L.F.

Debit

Credit

1

Purchase a/c dr

450,000

To accounts payables a/c

450,000

2

Factory Payroll a/c dr

237,000

To cash a/c

237,000

3

Factory overhead a/c dr

30,000

To accounts payables a/c

30,000

4

Indirect labor a/c dr

14,000

To Factory Overhead a/c dr

14,000

5

Factory rent a/c dr

17,000

To cash a/c

17,000

6

Factory Utilities a/c dr

11,000

To cash a/c

11,000

7

Other Factory overhead a/c dr

10,800

To accounts payables a/c

10,800

8

WIP a/c dr (job no. 306)

105,000

To factory overhead a/c

105,000

9

WIP a/c dr (job no. 307)

170,000

To factory overhead a/c

170,000

10

WIP a/c dr (job no. 308)

75,000

To factory overhead a/c

75,000

11

Labor a/c dr (job no. 306)

41,000

To factory overhead a/c

41,000

12

Labor a/c dr (job no. 307)

62,000

To factory overhead a/c

62,000

13

Labor a/c dr (job no. 306)

12,0,00

To factory overhead a/c

12,000

14

Applied overhead a/c dr (job no. 306)

0

To factory overhead a/c

0

15

Applied overhead a/c dr (job no. 307)

0

To factory overhead a/c

0

16

Cash a/c dr

390,000

To CGS a/c

390,000

17

Job no. 306 a/c dr

390,000

To sales a/c

390,000

Computation of Gross Profit:

Debit                                                                   Credit

Particulars

$

$

Particulars

$

$

Purchases

450,000

Sales

390,000

Factory payroll

237,000

Closing Stock

130,000

Factory rent

  17,000

Factory Utilities

  11,000

Direct materials

105,000

Direct labor

41,000

341,000

861,000

861,000

To Gross Loss

341,000

Date

Particulars

L.F.

Debit

Credit

1

Purchase a/c dr

450,000

To accounts payables a/c

450,000

2

Factory Payroll a/c dr

237,000

To cash a/c

237,000

3

Factory overhead a/c dr

30,000

To accounts payables a/c

30,000

4

Indirect labor a/c dr

14,000

To Factory Overhead a/c dr

14,000

5

Factory rent a/c dr

17,000

To cash a/c

17,000

6

Factory Utilities a/c dr

11,000

To cash a/c

11,000

7

Other Factory overhead a/c dr

10,800

To accounts payables a/c

10,800

8

WIP a/c dr (job no. 306)

105,000

To factory overhead a/c

105,000

9

WIP a/c dr (job no. 307)

170,000

To factory overhead a/c

170,000

10

WIP a/c dr (job no. 308)

75,000

To factory overhead a/c

75,000

11

Labor a/c dr (job no. 306)

41,000

To factory overhead a/c

41,000

12

Labor a/c dr (job no. 307)

62,000

To factory overhead a/c

62,000

13

Labor a/c dr (job no. 306)

12,0,00

To factory overhead a/c

12,000

14

Applied overhead a/c dr (job no. 306)

0

To factory overhead a/c

0

15

Applied overhead a/c dr (job no. 307)

0

To factory overhead a/c

0

16

Cash a/c dr

390,000

To CGS a/c

390,000

17

Job no. 306 a/c dr

390,000

To sales a/c

390,000

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