newconnect mheducation.com Homework? Saved Marcelino Co\'s March 31 inventory of

Question

newconnect mheducation.com Homework? Saved Marcelino Co's March 31 inventory of raw materials is $88.000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials. $54,000: indirect labor $29,000; factory rent, $39,000; factory utilities, $22,000: and factory equipment depreclation, $58,000. 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 Balances on March 31 Direct materials Direet labor Applied overhead 27,000 $45,000 15, 000 ,500 4,000 12,000 Costs during Apri1 Direct materials Direet labor Applied overhead 131,000 215,000 $100,000 52,000102.000 Pinished Pinished Status on April 30an (sold) (unsold) process Problem 19-1A Part 2 a. Materials purchases (on credit b. Direct materials used in production. c. 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.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory h. Cost of goods sold for Job 306 L. 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) 2. Prepare journal entries for the month of April to record the above transactions. View transaction list view journal entry worksheet 80

Explanation / Answer

Journal entries: Accounts title and explanations Debit $ Credit $ Raw material Inventory Dr. 580000      Accounts payable 580000 Work in process Job 306 131000 Work in process Job 307 215000 Work in process Job 308 100000      Raw material inventory 446000 Work in process Job 306 100000 Work in process Job 307 152000 Work in process Job 308 102000       Factory Wages 354000 Factory Overheads Account Dr. 29000       Cash Account 29,000 Work in process Job 306 50000 Work in process Job 307 76000 Work in process Job 308 51000         Factory Overheads 177000 Factory Overheads Dr. 54000     Raw material inventory 54000 factory Overheads Dr. 22000      Ccash Account 22000 (for utilities bill paid) factory Overheads Dr. 39000       Cash Account 39000 (for rent paid) Factory Overheads Account dr. 58000      Accumulated Depreciation-Equipment 58000 Finished Goods inventory Dr. 854500    Work in process Job 306 344000     Work in process Job 307 510500 Cost of goods sold Ddr. 344000       Finished Goods Inventory 344000 Cash Account 660,000        Sales revenue 660000 Cost of Goods sold Dr. 177000       Factory Overheads 177000

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