Answer:
A journal entry was prepared to record the transactions of Marcelino Company during the month of April with the scheduled cost of goods.
Explanation:
Solution
The first step is to take is preparing a journal entries to record the transactions of Marcelino Company during the month of April.
(a) JOURNAL ENTRIES OF MARCELINO COMPANY
Job 306 Job 307 Job 308 April Total
Balances on 31st
March
Direct materials 29000 35000 64000
Direct labor 20000 18000 38000
Applied overhead 10000 9000
(b)
Costs during April
Direct materials 135000 220000 100000 455000
Direct labor 85000 150000 105000 340000
Applied overhead 42500 75000 52500 170000
Cost of Manufacturing 32150 507000 257500 1086000
Status on April 30 Finished (sold)Finished (unsold)In process
April Profit Statement
Manufacturing Cost 1086000
Less Closing WIP job 306 257500
Less Finished goods 307 507000
ADD overhead under applied 5000
Cost Of Goods sold 326500
Sales Value 635000
Gross Profit 308500
OverheadActualy incured
Indirect material 50000
Indirect labor 23000
Factory rent 32000
Factory Utility 19000
Factory equipment 51000
OverheadActualy incured 175000
Overhead applied 170000
Overhead under applied 5000
We create another Journal for Marcelino Company
Journal Credit Debit
Material Control 500000
Account Payable 500000
Overhead control 175000
Overhead payable 175000
Wage Control 363000
Wage Payable 363000
Work in progress 455000
Material Control 455000
Work in progress 340000
Direct labor 38000
Work in progress 170000
Applied overhead 170000
Overhead under applied 5000
Cost of Goods sold 5000
Finished Goods 507000
Work in progress 507000
