Record the entry for Materials purchases (on credit). Record the direct material
ID: 2569907 • Letter: R
Question
Record the entry for Materials purchases (on credit).
Record the direct materials used in production.
Record the Direct labor paid and assigned to Work in Process Inventory.
Record the indirect labor paid and assigned to Factory Overhead.
Record the entry for Overhead costs applied to Work in Process Inventory.
Record the cost of indirect materials used.
Record the cost of factory utilities, paid in cash.
Record depreciation on factory equipment.
Record the cost of factory rent, paid in cash.
Record the entry for transfer of Jobs 306 and 307 to Finished Goods Inventory.
Record the Cost of goods sold for Job 306.
Record the revenue from the sale of Job 306.
Record the entry for assignment of any underapplied or overapplied overhead to the Cost of Goods Sold.
The following information applies to the questions displayed below.) Marcelino Co's March 31 Inventory of raw materials Is $80,000. Raw materials purchases In Aprll are $500,000, and factory payroll cost In Aprll Is $363,000. Overhead costs Incurred in April are: Indlrect materlals, $50,000; Indirect labor, $23,000, factory rent, $32,000; factory utlities, $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 Aprll. Costs of the three jobs worked on In April followw Job 306 Job 307 Job 308 Balances on March 31 Direct materlals Direct labor Applied overhead $ 29,000 20,000 10,000 $ 35,000 18,000 9,000 Costs during April Direct materlals Direct labor Applied overhead 135,000 85,000 220,000 150,000 $ 100,000 105,000 Status on April 30 FInlshed (sold) Finished (unsold) n processExplanation / Answer
Answer for question no.1:
Answer for question no.2.a:
Material inventory a/c Dr 500,000
To Accounts Payable a/c Cr 500,000
(Being material purchased on credit)
Answer for question no.2.b:u
work in process - Job 306 a/c Dr $135,000
work in process - Job 307 a/c Dr $220,000
work in process - Job 308 a/c Dr $100,000
To Material inventory a/c Cr $455,000.
(Being material used in April for Jobs 306,307,308)
Answer for Qustion no.2.c:
Direct labour a/c Dr $340,000
To Cash a/c Cr $340,000
(Being direct labout incurred in April)
work in process - Job 306 a/c Dr $85,000
work in process - Job 307 a/c Dr $150,000
work in process - Job 308 a/c Dr $105,000
To Direct labour a/c Cr $340,000.
(Being Direct labour used in April for Jobs 306,307,308)
Particulars Job 306 Job 307 Job 308 Total From March Direct materials(1) 29000 35000 64000 Direct labour(2) 20000 18000 38000 Applied Overhead(3) 10000 9000 19000 Beginning goods in process(4)=(1)+(2)+(3) 59000 62000 0 121000 For April Direct materials(5) 135000 220000 100000 455000 Direct labour(6) 85000 150000 105000 340000 Applied Overhead(7)=50%*(6) 42500 75000 52500 170000 Total costs added in April(8) 262500 445000 257500 965000 Total costs(April 30)(9)=(8)+(4) 321500 507000 257500 1475000 Status on April 30 Finished (sold) Finished(Unsold) In process April 30 cost included in Cost of goods sold Finished goods inventory Work in processRelated Questions
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