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Problem 15-1A Production costs computed and recorded; reports prepared LO C2, 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 $82,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $23,000; factory rent, $35,000; factory utilities, $19,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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		$	29,000			$	42,000
Direct labor			20,000				17,000
Applied overhead			10,000				8,500
Costs during April
Direct materials			130,000				220,000			$	115,000
Direct labor			102,000				153,000				105,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

rev: 03_15_2018_QC_CS-121813

Problem 15-1A 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.

.....

• Record the cost of indirect materials used.

Note: Enter debits before credits.

What do I put in the first section part of this general?

Transaction	General Journal	Debit	Credit
f(1).		55,000
	Raw materials inventory		55,000

.....

• Record depreciation on factory equipment.

Note: Enter debits before credits.

What do account do I put to credit?

Transaction	General Journal	Debit	Credit
f(3).	Factory overhead	59,000
			59,000

• Record the entry for assignment of any underapplied or overapplied overhead to the Cost of Goods Sold.

Note: Enter debits before credits.

What is the correct amount to put for COGS and Factory Overhead

Transaction	General Journal	Debit	Credit
j.	Cost of goods sold
	Factory overhead