Marcelino Co.'s March 31 inventory of raw materials is $83,000.Raw materials purchases in April are $550,000, and factory payrollcost in April is $365,000. Overhead costs incurred in April are:indirect materials, $54,000; indirect labor, $27,000; factory rent,$35,000; factory utilities, $24,000; and factory equipmentdepreciation, $54,000. The predetermined overhead rate is 50% ofdirect labor cost. Job 306 is sold for $685,000 cash in April.Costs of the three jobs worked on in April follow.
Job 306 Job 307 Job 308 Balances onMarch 31 Directmaterials $ 26,000 $ 37,000 Direct labor 21,000 13,000 Appliedoverhead 10,500 6,500 Costs duringApril Directmaterials 138,000 215,000 $ 115,000 Direct labor 104,000 154,000 104,000 Appliedoverhead ? ? ? Status onApril 30 Finished (sold) Finished (unsold) In process
Prepare journal entries for the month of April to recordthe above transactions.
a. Materials purchases (on credit).
b. Direct materials used in production.
c. Direct labor paid and assignedto Work in Process Inventory. d. Indirect labor paid and assignedto Factory Overhead. e. Overhead costs applied to Workin 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 toFinished Goods Inventory. h. Cost of goods sold for Job306. i. Revenue from the sale of Job306. j. Assignment of any underapplied or overapplied overhead to theCost of Goods Sold account. (The amount is not material.)
Marcelino Co.'s March 31 inventory of raw materials is $83,000.Raw materials purchases in April are $550,000, and factory payrollcost in April is $365,000. Overhead costs incurred in April are:indirect materials, $54,000; indirect labor, $27,000; factory rent,$35,000; factory utilities, $24,000; and factory equipmentdepreciation, $54,000. The predetermined overhead rate is 50% ofdirect labor cost. Job 306 is sold for $685,000 cash in April.Costs of the three jobs worked on in April follow. |
| Job 306 | Job 307 | Job 308 | ||||||||||||||||||||||||||||||
| Balances onMarch 31 | ||||||||||||||||||||||||||||||||
| Directmaterials | $ | 26,000 | $ | 37,000 | ||||||||||||||||||||||||||||
| Direct labor | 21,000 | 13,000 | ||||||||||||||||||||||||||||||
| Appliedoverhead | 10,500 | 6,500 | ||||||||||||||||||||||||||||||
| Costs duringApril | ||||||||||||||||||||||||||||||||
| Directmaterials | 138,000 | 215,000 | $ | 115,000 | ||||||||||||||||||||||||||||
| Direct labor | 104,000 | 154,000 | 104,000 | |||||||||||||||||||||||||||||
| Appliedoverhead | ? | ? | ? | |||||||||||||||||||||||||||||
| Status onApril 30 | Finished (sold) | Finished (unsold) | In process | |||||||||||||||||||||||||||||
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Related questions
[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $60,000; indirect labor, $20,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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 | $ | 27,000 | $ | 45,000 | ||||||||
| Direct labor | 21,000 | 19,000 | ||||||||||
| Applied overhead | 10,500 | 9,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 139,000 | 215,000 | $ | 105,000 | ||||||||
| Direct labor | 103,000 | 152,000 | 104,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 1
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).
[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $60,000; indirect labor, $20,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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 | $ | 27,000 | $ | 45,000 | ||||||||
| Direct labor | 21,000 | 19,000 | ||||||||||
| Applied overhead | 10,500 | 9,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 139,000 | 215,000 | $ | 105,000 | ||||||||
| Direct labor | 103,000 | 152,000 | 104,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 2
Materials purchases (on credit).
Direct materials used in production.
Direct labor paid and assigned to Work in Process Inventory.
Indirect labor paid and assigned to Factory Overhead.
Overhead costs applied to Work in Process Inventory.
Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
Transfer of Jobs 306 and 307 to Finished Goods Inventory.
Cost of goods sold for Job 306.
Revenue from the sale of Job 306.
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.
[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $60,000; indirect labor, $20,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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 | $ | 27,000 | $ | 45,000 | ||||||||
| Direct labor | 21,000 | 19,000 | ||||||||||
| Applied overhead | 10,500 | 9,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 139,000 | 215,000 | $ | 105,000 | ||||||||
| Direct labor | 103,000 | 152,000 | 104,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 3
3. Prepare a schedule of cost of goods manufactured.
[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $60,000; indirect labor, $20,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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 | $ | 27,000 | $ | 45,000 | ||||||||
| Direct labor | 21,000 | 19,000 | ||||||||||
| Applied overhead | 10,500 | 9,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 139,000 | 215,000 | $ | 105,000 | ||||||||
| Direct labor | 103,000 | 152,000 | 104,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 4
4.1 Compute gross profit for April.
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 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 | $ | 29,000 | $ | 36,000 | ||||||||
| Direct labor | 24,000 | 15,000 | ||||||||||
| Applied overhead | 12,000 | 7,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
| Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 1
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).
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 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 | $ | 29,000 | $ | 36,000 | ||||||||
| Direct labor | 24,000 | 15,000 | ||||||||||
| Applied overhead | 12,000 | 7,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
| Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 2
Materials purchases (on credit).
Direct materials used in production.
Direct labor paid and assigned to Work in Process Inventory.
Indirect labor paid and assigned to Factory Overhead.
Overhead costs applied to Work in Process Inventory.
Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
Transfer of Jobs 306 and 307 to Finished Goods Inventory.
Cost of goods sold for Job 306.
Revenue from the sale of Job 306.
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. 1-13
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 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 | $ | 29,000 | $ | 36,000 | ||||||||
| Direct labor | 24,000 | 15,000 | ||||||||||
| Applied overhead | 12,000 | 7,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
| Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 3
3. Prepare a schedule of cost of goods manufactured.
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 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 | $ | 29,000 | $ | 36,000 | ||||||||
| Direct labor | 24,000 | 15,000 | ||||||||||
| Applied overhead | 12,000 | 7,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
| Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 4
4.1 Compute gross profit for April.
4.2 Show how to present the inventories on the April 30 balance sheet.
