dI A un er 15 Job Cost Homework 2017 Accounting 2Se Managerial Accounting Questi

Question

dI A un er 15 Job Cost Homework 2017 Accounting 2Se Managerial Accounting Questions 7-10 (of 14) The following information applies to the questions displayed below] Marcelino Co.'s March 31 inventory of raw materials is $87000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $370,000. Overhead materials, $55,000; indirect labor, $20,000; factory rent, $38,000; factory utilities, $24,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $685,000 cash in April. Costs of the three jobs worked on in April follow. costs incurred in April are: indirect Job 306 Job 307 Job 308 Balances on March 31 Direct materials Direct labor Applied overhead s 30,00040,000 14,000 7,000 25,000 12,500 Costs during April Direct materials Direct labor Applied overhead 134,000 101,000 210,000 105,000 104,000 151,000 Status on April 30 Finished (sold) Finished (unsold) In process value: 1.71 points Required 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). Job 306 Job 307 Job 308 From March 40,000 Direct Materials 30,000 $ 14,000

Explanation / Answer

1: Total costs:

2) Journal Entries :

All entries are correct except

J. Debit COGS $14000

Credit Factory Overhead $14000

(Being underapplied Factory overhead adjusted to COGS )

3: Schedule of COGM at April 30 :

4.1) Gross Profit :

Sales - COGS = 685000 - 353000 = $332000

4.2) Inventory :

RM = 87000+530000-449000 = $168000

WIP = $261000

FG = $497500

Job 306 Job 307 Job 308 From March DM 30000 40000 DL 25000 14000 F O/H 12500 7000 From April DM 134000 210000 105000 DL 101000 151000 104000 F O/H (50% of DLC) 50500 75500 52000 Total Cost 353000 497500 261000 SOLD FG WIP

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