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.
Job 306 Job 307 Job
308
Balances on March 31
Direct materials $
29,000 $
35,000
Direct labor 20,000
18,000
Applied overhead 10,000
9,000
Costs during April
Direct materials 135,000
220,000
$
100,000
Direct labor 85,000
150,000
105,000
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.)
Prepare journal entries for the month of April to record the
above transactions.
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