Required information

Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods manufactured LO P1, P2, P3, P4

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[The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April.

	Job 306	Job 307	Job 308
Balances on March 31
Direct materials used (in March)	$ 32,000	$ 36,000
Direct labor used (in March)	25,000	17,000
Overhead applied (March)	12,500	8,500
Costs during April
Direct materials used	133,000	210,000	$ 110,000
Direct labor used	103,000	150,000	103,000
Overhead applied	?	?	?
Status on April 30	Finished (sold)	Finished (unsold)	In process

Additional Information

1. Raw Materials Inventory has a March 31 balance of $84,000.
2. Raw materials purchases in April are $590,000, and total factory payroll cost in April is $385,000.
3. Actual overhead costs incurred in April are indirect materials, $60,000; indirect labor, $29,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $56,000.
4. Predetermined overhead rate is 50% of direct labor cost.
5. Job 306 is sold for $685,000 cash in April.

Problem 2-2A (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. 3. Prepare journal entries for the month of April to record the above transactions.

Problem 2-2A (Algo) Part 4

4. Prepare a schedule of cost of goods manufactured for the month end April 30.

Problem 2-2A (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.

5 Part 3 of 5 Required information Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods manufactured LO P1, P2, P3, P4 (The following information applies to the questions displayed below.) Marco Company shows the following costs for three jobs worked on in April. 0.71 points Job 306 Job 307 Job 308 $ 36,000 $ 32,000 25,000 12,500 17,000 8,500 eBook Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 133,000 103,000 210,000 150,000 ? Finished (unsold) $ 110,000 103,000 ? Print Finished (sold) In process References Additional Information a. Raw Materials Inventory has a March 31 balance of $84,000. b. Raw materials purchases in April are $590,000, and total factory payroll cost in April is $385,000. c. Actual overhead costs incurred in April are indirect materials, $60,000; indirect labor, $29,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $685,000 cash in April. Problem 2-2A (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. 3. Prepare journal entries for the month of April to record the above transactions. View transaction list View Journal entry worksheet No Transaction General Journal Debit Credit 1 a. 590,000 Raw materials inventory Accounts payable 590,000 2 b. 453,000 Work in process inventory Raw materials inventory 453,000 3 c. 356,000 Work in process inventory Cash 356,000 6 Part 4 of 5 Required information Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods manufactured LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] 0.71 points Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 eBook $ 32,000 25,000 12,500 $ 36,000 17,000 8,500 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Print 133,000 103,000 ? Finished (sold) 210,000 150,000 ? Finished (unsold) $ 110,000 103,000 ? In process References Additional Information a. Raw Materials Inventory has a March 31 balance of $84,000. b. Raw materials purchases in April are $590,000, and total factory payroll cost in April is $385,000. c. Actual overhead costs incurred in April are indirect materials, $60,000; indirect labor, $29,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $685,000 cash in April. Problem 2-2A (Algo) Part 4 4. Prepare a schedule of cost of goods manufactured for the month end April 30. MARCO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Direct materials used $ Direct labor Factory overhead applied Total manufacturing costs Add: Work in process inventory, beginning Total cost of work in process Less: Work in process inventory, ending Cost of goods manufactured $ 453,000 356,000 178,000 987,000 987,000 264,500 722,500 Problem 2-2A (Algo) Part 5 5-a. Compute gross profit for April. 5-6. 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 5A Req 5B Compute gross profit for April. Gross profit Problem 2-2A (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 5A Req 5B Show how the three inventory accounts are reported on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories $ 0