70.2K

Verified Solution

Link Copied!

D Problem 19-1A Production costs computed and recorded; reports prepared PP20 P3 P40 Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Page 715 Job 306 Job 307 Job 308 $ 29,000 $ 35,000 20,000 18,000 10,000 9,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 135,000 220,000 $100,000 85,000 150,000 105,000 ? ? ? Finished (sold) Finished (unsold) In process 0 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). 2. Prepare journal entries for the month of April to record the following. 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. i. 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.) Check (2) $5,000 underapplied 3. Prepare a schedule of cost of goods manufactured. (3) Cost of goods manufactured, $828,500 4. Compute gross profit for April. Show how to present the inventories on the April 30 balance sheet. 5. Over- or underapplied overhead is closed to Cost of Goods Sold. Is this adjustment also posted to individual job cost sheets

Answer & Explanation Solved by verified expert

See Answer