Problem $2-2$A $($Algo$)$ Computing and recording job costs; preparing schedule of cost of goods manufactured LO P$1,$ P$2,$ P$3,$ P$4$ Required information

Problem $2-2$A $($Algo$)$ Computing and recording job costs; preparing schedule of cost of goods

manufactured LO P$1,$ P$2,$ P$3,$ P$4$

$[$The following information applies to the questions displayed below.$]$

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 $$82,800.$

b$.$ Raw materials purchases in April are $$507,000,$ and total factory payroll cost in April is $$370,000.$

c$.$ Actual overhead costs incurred in April are indirect materials, $$51,750$; indirect labor, $$24,750$; factory rent, $$33,750$;

factory utilities, $$20,750$; and factory equipment depreciation, $$52,750.$

d$.$ Predetermined overhead rate is $50\%$ of direct labor cost.

e$.$ Job $306$ is sold for $$642,000$ cash in April.

Problem $2-2$A $($Algo$)$ Part $1$

Required:

Determine the amount of overhead applied to each job in April. Problem $2-2$A $($Algo$)$ Part $2$

Determine the total cost assigned to each job as of April $30($including the balances from March $31).$ Problem $2-2$A $($Algo$)$ Part $3$

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.

Prepare journal entries for the month of April to record the above transactions.

Journal entry worksheet

Record the entry for material purchased on credit.

Note: Enter debits before credits. Problem $2-2$A $($Algo$)$ Part $4$

Prepare a schedule of cost of goods manufactured for the month ended April $30.$Problem $2-2$A $($Algo$)$ Part $5$

$5-$a$.$ Compute gross profit for April.

$5-$b$.$ Show how the three inventory accounts are reported on the April $30$ balance sheet.

Complete this question by entering your answers in the tabs below.

Req $5$A

Req $5$B

Compute gross profit for April.