3 Required information Problem 19-1A Production costs computed and recorded; rep

Question

3 Required information Problem 19-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 The folWowing information applies to the questions displayed below Marcelino Co's March 31 inventory of raw materials is $84,000 Raw materials purchases in April are $530,000, and factory payroll cost in April is $387000. Overhead costs incurred in April are: indirect materials, $50,000, indirect labor $29,000, factory rent. $36,000, factory utilities, $23,000, and factory equipment depreciation, $54,000 The predetermined overhead rate is 50% ofdirect labor cost Job 306 is sold for S655000 cash in Apr. Costs of the three jobs worked on in April follow 10 References 1 Dlrect materials Direct labor Applied overhead 31,000 36,000 23,000 11,580 15,000 ,500 Costs during Apri 131,0 205,000 105,000 Direct materials Direct labor Applied overhead 101,000 153,000 104,00 Finished inshed In process Status on April 30 (sold) (unsold)

Explanation / Answer

Part 2 Journal entries: Date Account Titles Debit $ Credit $ a Material 530000 AP 530000 material purchases on credit b WIP 441000 Material 441000 DM used in production c WIP 358000 Wages payable 358000 DL to WIP d Factory overhead 29000 Cash 29000 indirect labor to overhead e WIP Factory overhead Overhead applied to WIP f Factory overhead 163000 Expenses incurred 163000 actual overhead costs incurred g FG Inventory 838000 (348000+490000) WIP 838000 Transfer of FG from WIP h COGS 348000 FG Inventory 348000 Cost of goods sold 306 i AR 655000 Sales Revenue 655000 sales of job 306 j COGS 13000 (192000- 358000/2 =13000) Factory overhead 13000 under overhead to COGS

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