At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
Answer:
Marcelino Co.
1. Assignment of underapplied or overapplied overhead to the Cost of Goods Sold account:
a. Materials purchases (on credit) = $560,000
b. Direct materials used in production = $450,000
c. Direct labor paid and assigned to Work in Process Inventory = $359,000
d. Indirect labor paid and assigned to Factory Overhead = $23,000
e. Overhead costs applied to Work in Process Inventory = $179,500
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) = $196,000
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory = $844,000
h. Cost of goods sold for Job 306 = $350,500
i. Revenue from the sale of Job 306 = $655,000
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) = $16,500
2. Journal Entries:
Debit Cost of Goods Sold $16,500
Credit Manufacturing Overhead $16,500
To assign underapplied overhead to the cost of goods sold.
Journal Entries to record April Transactions:
a. Debit Raw materials inventory $560,000
Credit Accounts payable $560,000
To record the purchase of raw materials on account.
b. Debit Work in process inventory $450,000
Credit Raw materials inventory $450,000
To record the materials used in production.
c. Debit Work in process inventory $359,000
Credit Cash 359,000
To record payment for direct labor costs.
d. Debit Factory overhead $23,000
Credit Cash $23,000
To record payment for indirect labor costs.
e. Debit Work in process inventory $179,500
Credit Factory overhead $179,500
To record overhead assigned to WIP.
f(1). Debit Factory overhead $54,000
Credit Raw materials inventory $54,000
To record indirect materials used in production.
f(2). Debit Factory overhead $24,000
Credit Cash $24,000
To record payment for factory utilities.
f(3). Debit Factory overhead $56,000
Credit Accumulated depreciation-factory equipment $56,000
To record factory equipment depreciation.
f(4). Debit Factory overhead $39,000
Credit Cash $39,000
To record payment for factory rent.
g. Debit Finished Goods Inventory $844,000
Credit Work in process inventory $844,000
To record the transfer of Jobs 306 and 307 to Finished Goods Inventory.
h. Debit Cost of goods sold $350,500
Credit Finished goods inventory $350,500
To record the cost of Job 306 sold.
i. Debit Cash $655,000
Credit Sales Revenue $655,000
To record the sale of Job 306.
j. Debit Cost of goods sold $16,500
Credit Factory overhead $16,500
To assign the underapplied overhead.
Explanation:
a) Data and Calculations:
March 31 Inventory of raw materials = $90,000
Raw materials purchases in April = $560,000
Factory payroll cost in April = $368,000
Overhead costs incurred in April:
Indirect materials, $54,000
Indirect labor, $23,000
Factory rent, $39,000
Factory utilities, $24,000
Factory equipment depreciation, $56,000
Total overhead costs $196,000
Predetermined overhead rate = 50% of direct labor costs
Sale of Job 306 = $655,000
Cost Sheet:
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $31,000 $37,000 $68,000
Direct labor 21,000 18,000 39,000
Applied overhead 10,500 9,000 19,500
Beginning work in process $62,500 $64,000 $126,500 $253,000
Costs during April
Direct materials 135,000 200,000 $115,000 450,000
Direct labor 102,000 153,000 104,000 359,000
Applied overhead 51,000 76,500 52,000 179,500
Total cost of production $350,500 $493,500 $397,500 $1,241,500
Status on April 30 Finished (sold) Finished (unsold) In process Total
Underapplied or Overapplied Overhead:
Actual overhead costs = $196,000
Overhead assigned = 179,500
Underapplied overhead $16,500
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.