Answer:
<em>a. Prepare journal entries </em>
J1
Raw Materials $500,000 (debit)
Cash $500,000 (credit)
J2
Factory Labor $363,000 (debit)
Salaries and Wages Accrued $363,000 (credit)
J3
Overheads $175,000 (debit)
indirect materials $50,000 (credit)
Indirect labor $23,000 (credit)
factory rent $32,000 (credit)
factory utilities $19,000 (credit)
factory equipment depreciation $51,000 (credit)
J4
Work in Process $181,500 (debit)
Overheads $181,500 (credit)
<em>b. the total cost, and account classification for each job</em>
Job 306 Job 307 Job 308
Direct materials 135,000 220,000 100,000
Direct labor 85,000 150,000 105,000
Applied overhead 42,500 75,000 52,500
Total Cost 262,500 445,000 257,500
<em>c. Cost of goods manufactured for Marcelino Company</em>
Job 306 $ 262,500
Job 307 $ 445,000
Job 308 $ 257,500
Total $ 965,000
<em>d. the gross profit on the sale of the job(s) </em>
Job 306
Sales $635,000
Less Cost of Goods Sold :
Opening Finished Inventory $0
Add Cost of Manufacture $262,500
Less Closing Finished Inventory $0 ($262,500)
Gross Profit $372,4500
Explanation:
Only Job 306 was sold, thus the gross profit is calculated on the sold job only.
