Answer Happy

1
Record the entry for material purchased on credit.
2
Record the direct materials used in production.
3
Record the direct labor (paid in cash).
4
Record the indirect materials used.
5
Record the indirect labor (paid in cash).
6
Record the application of overhead costs.
7
Record the actual other overhead costs incurred (Factory rentand utilities are paid in cash.)
8
Record the transfer of Jobs 306 and 307 to Finished GoodsInventory.
9
Record the cost of goods sold for Job 306.
10
Record the revenue from the sale of Job 306 received incash.
11
Record the entry to close underapplied or overapplied overheadto the Cost of Goods Sold account.
Marco Company shows the following costs for three jobs worked on in April. 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 Additional Information Job 306 $ 25,000 21,000 10,500 137,000 102,000 ? Finished (sold) Job 307 $ 40,000 18,000 9,000 210,000 152,000 ? Finished (unsold) Job 308 $ 110,000 101,000 ? In process a. Raw Materials Inventory has a March 31 balance of $83,000. b. Raw materials purchases in April are $520,000, and total factory payroll cost in April is $385,000. c. Actual overhead costs incurred in April are indirect materials, $50,000; indirect labor, $30,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $57,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $660,000 cash in April.

Required: 1. Determine the amount of overhead applied to each job in April. Predetermined overhead rate Overhead applied 306 0.50 307 0.50 308 0.50 April Total $ 0 0.50

2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). March Direct materials Direct labor Overhead applied Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Total costs Status on April 30 April 30 cost included in: $ Job 306 25,000 21,000 10,500 137,000 102,000 239,000 Finished (sold) $ Job 307 40,000 18,000 9,000 210,000 152,000 362,000 Finished (unsold) Job 308 In process 110,000 101,000 211,000 April Total $ $ 0 457,000 355,000 0 812,000 0

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.

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 Total manufacturing costs Total cost of work in process Cost of goods manufactured

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 Compute gross profit for April. Gross profit < Req 5A Req 5B >

Req 5A Req 5B Show how the three inventory accounts are reported on the April 30 balance sheet. Raw materials Work in process Finished goods Total inventories Inventories