Required information

Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4

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[The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $26,000; factory rent, $40,000; factory utilities, $21,000; and factory equipment depreciation, $60,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 cash in April. Costs of the three jobs worked on in April follow.

	Job 306				Job 307				Job 308
Balances on March 31
Direct materials		$	26,000			$	39,000
Direct labor			24,000				17,000
Applied overhead			12,000				8,500
Costs during April
Direct materials			136,000				205,000			$	105,000
Direct labor			104,000				151,000				101,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

Problem 02-1A Part 2

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

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

2 Required information Part 2 of 4 Transaction Debit Credit No 1 Answer is complete but not entirely correct. General Journal Raw materials Inventory Accounts payable a 510,000 OO 510.000 points 2 446,000 Work in process inventory Raw materials inventory OO 445.000 3 c 356,000 Work in process inventory Cash OO 356,000 4 d 26.000 Factory overhead Cash OO 26.000 5 178,000 Work in process inventory Factory overhead oo 178,000 6 (1) 53,000 Factory overhead Raw materials inventory 53.000 7 f(2) 21,000 Factory overhead Cash OO OO OO 21,000 8 f(3) 60,000 Factory overhead Accumulated depreciation factory equipment 60.000 14) 40.000 Factory overhead Cash olo 40 000 10 9 859.000 3 Finished goods Inventory Work in process inventory olo 852.000 2