Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Materials purchases (on credit). Direct materials used. Job 306 $ 26,000 24,000 12,000 View transaction list 131,000 104,000 Journal entry worksheet < 1 2 3 4 5 6 Finished (sold) Job 307 $ 40,000 16,000 8,000 Additional Information a. Raw Materials Inventory has a March 31 balance of $87,000. b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $57,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $655,000 cash in April. 7 8 210,000 $ 110,000 155,000 103,000 ? Finished (unsold) Direct labor used (and paid in cash) and assigned to Work in Process Inventory. Indirect materials used and assigned to Factory Overhead. Required information -Transfer of Jobs 306 and 307 to Finished Goods Inventory. Cost of goods sold for Job 306. Revenue from the sale of Job 306 received in cash. Close underapplied or overapplied overhead to the Cost of Goods Sold account. Prepare journal entries for the month of April to record the above transactions. Job 308 Record the transfer of Jobs 306 and 307 to Finished Goods Inventory. In process 11
Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Materials purchases (on credit). Direct materials used. Job 306 $ 26,000 24,000 12,000 View transaction list 131,000 104,000 Journal entry worksheet < 1 2 3 4 5 6 Finished (sold) Job 307 $ 40,000 16,000 8,000 Additional Information a. Raw Materials Inventory has a March 31 balance of $87,000. b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $57,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $655,000 cash in April. 7 8 210,000 $ 110,000 155,000 103,000 ? Finished (unsold) Direct labor used (and paid in cash) and assigned to Work in Process Inventory. Indirect materials used and assigned to Factory Overhead. Required information -Transfer of Jobs 306 and 307 to Finished Goods Inventory. Cost of goods sold for Job 306. Revenue from the sale of Job 306 received in cash. Close underapplied or overapplied overhead to the Cost of Goods Sold account. Prepare journal entries for the month of April to record the above transactions. Job 308 Record the transfer of Jobs 306 and 307 to Finished Goods Inventory. In process 11
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
![Required information
[The following information applies to the questions displayed below.]
Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
a. Materials purchases (on credit).
b. Direct materials used.
View transaction list
Journal entry worksheet
< 1 2 3 4
Note: Enter debits before credits.
Transaction
h.
5
Record entry
Job 306
General Journal
$ 26,000
24,000
12,000
Additional Information
a. Raw Materials Inventory has a March 31 balance of $87,000.
b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000.
c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000;
factory utilities, $22,000; and factory equipment depreciation, $57,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $655,000 cash in April.
6
Clear entry
131,000
104,000
Finished
(sold)
c. Direct labor used (and paid in cash) and assigned to Work in Process Inventory.
d. Indirect materials used and assigned to Factory Overhead.
Required information
h. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
i. Cost of goods sold for Job 306.
j. Revenue from the sale of Job 306 received in cash.
k. Close underapplied or overapplied overhead to the Cost of Goods Sold account.
3. Prepare journal entries for the month of April to record the above transactions.
Job 307
7
$ 40,000
16,000
8,000
8
Record the transfer of Jobs 306 and 307 to Finished Goods Inventory.
210,000
155,000
?
Finished
(unsold)
Job 308
Debit
$ 110,000
103,000
11
In process
Credit
View general journal
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
a. Materials purchases (on credit).
b. Direct materials used.
View transaction list
Journal entry worksheet
< 1 2 3 4
Note: Enter debits before credits.
Transaction
h.
5
Record entry
Job 306
General Journal
$ 26,000
24,000
12,000
Additional Information
a. Raw Materials Inventory has a March 31 balance of $87,000.
b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000.
c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000;
factory utilities, $22,000; and factory equipment depreciation, $57,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $655,000 cash in April.
6
Clear entry
131,000
104,000
Finished
(sold)
c. Direct labor used (and paid in cash) and assigned to Work in Process Inventory.
d. Indirect materials used and assigned to Factory Overhead.
Required information
h. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
i. Cost of goods sold for Job 306.
j. Revenue from the sale of Job 306 received in cash.
k. Close underapplied or overapplied overhead to the Cost of Goods Sold account.
3. Prepare journal entries for the month of April to record the above transactions.
Job 307
7
$ 40,000
16,000
8,000
8
Record the transfer of Jobs 306 and 307 to Finished Goods Inventory.
210,000
155,000
?
Finished
(unsold)
Job 308
Debit
$ 110,000
103,000
11
In process
Credit
View general journal
>
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