Concept explainers
Problem 19-1A
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
Jsb 306 | Job 307 | Job 308 | |
Balances on March 31 | |||
Direct materials | $ 29.000 | $ 35.000 | |
Direct lata | 20.000 | 18.000 | |
Applied overhead | 10,10 | 9.000 | |
Costs during April | |||
Direct materials | 135,000 | 220.000 | $100,000 |
Direct lata | 85,000 | 150.000 | 105,000 |
Applied overhead | ? | ? | ? |
Status or April 30 | Finished (sold) | 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 Inventor)7.
d. Indirect labor paid and assigned to Factor;7 Overhead.
e. Overhead costs applied to Work in Process Inventor)7.
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in 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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