The General Ledger tool in Connect automates several of the procedural steps in accounting so that the financial professional can focus on the impacts of each transaction on various reports and performance measures.
GL19-1 General Ledger assignment GL19-1, based on Problem 19- lA, focuses on transactions related to job order costing. Prepare summary
Production costs computed and recorded; reports prepared C2 P1 P2 P3 P4
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and
r | 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 | 22010 | $100,000 |
Direct labor......... | 85,000 | 150,000 | 105,000 |
Applied overhead............ | ? | ? | ? |
Status on Apr! 30........... | Finished (scldl) | Finished (unsold) | In process |
Required
- Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead) and the total cost assigned to each job (including the balances from March 31).
- Prepare journal entries for the month of April to record the following.
a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory. f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid m cash.)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. Revenue from the sale of Job 306. j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
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