Marcelino Co.'s March 31 inventory of raw materials is $90,000.Raw materials purchases in April...

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Marcelino Co.'s March 31 inventory of raw materials is $90,000.Raw materials purchases in April are $590,000, and factory payrollcost in April is $384,000. Overhead costs incurred in April are:indirect materials, $53,000; indirect labor, $29,000; factory rent,$38,000; factory utilities, $21,000; and factory equipmentdepreciation, $61,000. The predetermined overhead rate is 50% ofdirect labor cost. Job 306 is sold for $670,000 cash in April.Costs of the three jobs worked on in April follow. Problem 2-1APart 2 Materials purchases (on credit). Direct materials used inproduction. Direct labor paid and assigned to Work in ProcessInventory. Indirect labor paid and assigned to Factory Overhead.Overhead costs applied to Work in Process Inventory. Actualoverhead costs incurred, including indirect materials. (Factoryrent and utilities are paid in cash.) Transfer of Jobs 306 and 307to Finished Goods Inventory. Cost of goods sold for Job 306.Revenue from the sale of Job 306. Assignment of any underapplied oroverapplied overhead to the Cost of Goods Sold account. (The amountis not material.) 2. Prepare journal entries for the month of Aprilto record the above transactions. Job 306 Job 307 Job 308 Balanceson March 31 Direct materials $ 29,000 $ 37,000 Direct labor 24,00019,000 Applied overhead 12,000 9,500 Costs during April Directmaterials 137,000 205,000 $ 115,000 Direct labor 103,000 152,000100,000 Applied overhead ? ? ? Status on April 30 Finished (sold)Finished (unsold) In process rev: 03_14_2018_QC_CS-121813 Problem2-1A Part 1 Required: 1. Determine the total of each productioncost incurred for April (direct labor, direct materials, andapplied overhead), and the total cost assigned to each job(including the balances from March 31). Problem 2-1A Part 3 3.Prepare a schedule of cost of goods manufactured. 4.1 Compute grossprofit for April. 4.2 Show how to present the inventories on theApril 30 balance sheet.

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Solution Journal Entries Marcelino Co Event Particulars Debit Credit a Raw material inventory Dr 59000000 To Accounts Payable 59000000 To record purchase of raw material b Work In Process Dr 45700000 To Raw material inventory 45700000 To record raw material used in production c Work In Process Dr 35500000 To Cash 35500000 To record direct labor payment and assigment to production d Factory overhead Dr 2900000 To Cash 2900000 To record Indirect labor payment and assigment to factory overhead e Work In Process Dr See Answer

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In: AccountingMarcelino Co.'s March 31 inventory of raw materials is $90,000.Raw materials purchases in April are...Marcelino Co.'s March 31 inventory of raw materials is $90,000.Raw materials purchases in April are $590,000, and factory payrollcost in April is $384,000. Overhead costs incurred in April are:indirect materials, $53,000; indirect labor, $29,000; factory rent,$38,000; factory utilities, $21,000; and factory equipmentdepreciation, $61,000. The predetermined overhead rate is 50% ofdirect labor cost. Job 306 is sold for $670,000 cash in April.Costs of the three jobs worked on in April follow. Problem 2-1APart 2 Materials purchases (on credit). Direct materials used inproduction. Direct labor paid and assigned to Work in ProcessInventory. Indirect labor paid and assigned to Factory Overhead.Overhead costs applied to Work in Process Inventory. Actualoverhead costs incurred, including indirect materials. (Factoryrent and utilities are paid in cash.) Transfer of Jobs 306 and 307to Finished Goods Inventory. Cost of goods sold for Job 306.Revenue from the sale of Job 306. Assignment of any underapplied oroverapplied overhead to the Cost of Goods Sold account. (The amountis not material.) 2. Prepare journal entries for the month of Aprilto record the above transactions. Job 306 Job 307 Job 308 Balanceson March 31 Direct materials $ 29,000 $ 37,000 Direct labor 24,00019,000 Applied overhead 12,000 9,500 Costs during April Directmaterials 137,000 205,000 $ 115,000 Direct labor 103,000 152,000100,000 Applied overhead ? ? ? Status on April 30 Finished (sold)Finished (unsold) In process rev: 03_14_2018_QC_CS-121813 Problem2-1A Part 1 Required: 1. Determine the total of each productioncost incurred for April (direct labor, direct materials, andapplied overhead), and the total cost assigned to each job(including the balances from March 31). Problem 2-1A Part 3 3.Prepare a schedule of cost of goods manufactured. 4.1 Compute grossprofit for April. 4.2 Show how to present the inventories on theApril 30 balance sheet.