-chapter 19 2 0 Required information The following information applies to the qu

Question

-chapter 19 2 0 Required information The following information applies to the questions displayed below) Part 2 of 4 Marcelino Co's March 31 Inventory of raw materials is $86,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $377,000. Overhead costs incurred in Apri are: indirect materials, $52.000, indirect labor, $23,000 factory rent, $40,000; factory utilities, $23,000; and factory equipment depreciation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 cash in April. Costs of the three jobs worked on in April follow. 10 points ob 3068 3obs 307 3ob 309 eBook Balances on March 31 s 27,000s37,000 16,000 ,000 Direet materials Direct labor Applied overhead 22,000 21,000 Costs during April 138,000 210,000 s10.00 151.000 100.000 Direct materials Direct labor Applied overhead Status on April 30 Finihed Pinished 103,000 Print (sold) References 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 t, Actual overhead costs incurred, including Indirect materials (Fectory rent and aities are poid in cash) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory h. Cost of goods sold for Job 306. I. Revenue from the sale of Job 306. J. Assignment of any underapplied or overapoied The anount s not meterial) ovemend to the Cost of Gos Ssod account K Prev 2 3 4 or 4 EEE Next >

Explanation / Answer

S.NO. ACCOUNTS TITLES AND EXPLANATIONS DEBIT IN $ CREDIT IN $ a. Raw material Inventory Dr. 500,000 Accounts payable 500,000 (For raw material purchased) b. Work in process Inventory Dr. 453,000    Raw material Inventory Account 453,000 (for raw material issued as direct) c Factory wages 377,000      Cash Account 377,000 (for wages incurred ) Work in Process Inventory Dr. 354,000      Factory wages    354,000 (for wages charged to work in process) d. Manufacturing overheads Account Dr. 23,000      Factory wages 23,000 (for indirect labour incurred) e. Work in Process Inventory Dr. 177,000       Manufacturing overhead account 177,000 (For manufacturing overhead applied during the month) f Manufacturing Overheads Dr. 172,000     Raw material Inventory 52,000      Cash Account 63,000      Accumulated Depreciation-Equipment 57,000 (for overheads incurred) g Finished Goods inventory Dr. 850,000     Work in process inventory 850,000 (for fnished goods complted) h Cost of Goods sold account Dr. 352,500    Finished goods inventory 352,500 (for goods sold cost) i Cash Account Dr. 645000      Sales revenue 645000 (for sale of goods) J Cost of goods sold Dr. 18000      Manufacturing Overheads 18000 (for under-applied overheads) Note: Cost of Jobs: 306 307 Beginning cost 60000 61000 Aadd: material cost 138000 210000 Add: labour cost 103000 151000 Add: OH applied at50% 51500 75500 Total cost 352500 497500

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