Required information [The following information applies to the questions displayed below.] Marcelino Co.'s...

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Accounting

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[The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $391,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $53,000. 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.

Job 306 Job 307 Job 308
Balances on March 31
Direct materials $ 31,000 $ 36,000
Direct labor 23,000 15,000
Applied overhead 11,500 7,500
Costs during April
Direct materials 130,000 210,000 $ 105,000
Direct labor 103,000 155,000 104,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process

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.

No Transaction General Journal Debit Credit
1 1 a. Raw materials inventory
2 Accounts payable
3
4 2 b. Work in process inventory
5 Raw materials inventory
6
7 3 c. Work in process inventory
8 Cash
9
10 4 d. Factory overhead
11 Cash
12
13 5 e. Work in process inventory
14 Factory overhead
15
16 6 f(1). Factory overhead
17 Raw materials inventory
18
19 7 f(2). Factory overhead
20 Cash
21
22 8 f(3). Factory overhead
23 Accumulated depreciation-factory equipment
24
25 9 f(4). Factory overhead
26 Cash
27
28 10 g. Finished goods inventory
29 Work in process inventory
30
31 11 h. Cost of goods sold
32 Finished goods inventory
33
34 12 i. Cash
35 Sales
36
37 13 j. Cost of goods sold
38 Factory overhead

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