General Ledger (GL) Assignments expose students to general ledger software similar to that in practice.

GL is part of Connect, and GL assignments are auto-gradable and have algorithmic options. For the following

GL assignment, prepare summary journal entries to record the transactions. Calculate the total cost of each job worked on. Then prepare a schedule of cost of goods manufactured and compute gross profit.

GL 19-1 Based on Problem 19-2A

Problem 19-2A

Marco Company shows the following costs for three jobs worked on in April.

Additional Information

a. Raw Materials Inventory has a March 31 balance of $80,000.
b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $363,000.
c. Actual overhead costs incurred in April are indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $635,000 cash in April.

Required

1. Determine the amount of overhead applied to each job in April.
2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31).

3. Prepare journal entries for the month of April to record the following.
a. Materials purchases (on credit).
b. Direct materials used.
c. Direct labor used (and paid in cash) and assigned to Work in Process Inventory.
d. Indirect materials used and assigned to Factory Overhead.
e. Indirect labor used (and paid in cash) and assigned to Factory Overhead.
f. Overhead costs applied to Work in Process Inventory.
g. Actual other overhead costs incurred. (Factory rent and utilities are paid in cash.)
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.

4. Prepare a schedule of cost of goods manufactured.
5. Compute gross profit for April. Show how the three inventory accounts are reported on the April 30 balance sheet.

Transcribed Image Text:

Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) . $ 29,000 $ 35,000 Direct labor used (in March) .... Overhead applied (March).. 20,000 18,000 10,000 9,000 Costs during April Direct materials used..... Direct labor used ... Overhead applied... 135,000 220,000 $100,000 85,000 150,000 105,000 Status on April 30.. Finished (sold) Finished (unsold) In process