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 $80 , 000 . b. Raw materials purchases in April are $500 , 000 , and total factory payroll cost in April is $363 , 000 . c. Actual overhead costs incurred in April are indirect materials, $50 , 000 ; indirect labor, $23 , 000 ; factory rent, $32 , 000 ; factory utilities, $19 , 000 ; and factory equipment deprociation, $51 , 000 . d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $635 , 000 cash in April. Required 1. Determine the amount of overhead applied to each job in April. 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31 ). 3. Prepare journal entries for the month of April to record the following. 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. Indireet 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 utilitics 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.
.
Marco Company shows the following costs for three jobs worked on in Ap.docx
1. 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 $80 , 000 . b. Raw materials
purchases in April are $500 , 000 , and total factory payroll cost in April is $363 , 000 . c. Actual
overhead costs incurred in April are indirect materials, $50 , 000 ; indirect labor, $23 , 000 ;
factory rent, $32 , 000 ; factory utilities, $19 , 000 ; and factory equipment deprociation, $51 ,
000 . d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $635 , 000
cash in April. Required 1. Determine the amount of overhead applied to each job in April. 2.
Determine the total cost assigned to each job as of April 30 (including the balances from March
31 ). 3. Prepare journal entries for the month of April to record the following. 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. Indireet 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 utilitics 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.
