User's response: Winfrey Co.'s March 31 inventory of raw materials is $ 150,0000. Raw materials purchases in April are $ 400,000, and factory payroll cost in April $220,000. Overhead costs incurred in April are: indirect materials, $30,000; indirect labor, $14,000; factory rent, $20,000; factory utilities, $ 12,000; and factory equipment depreciation, $30,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $380,000 cash in April. Costs of the three jobs worked on in April follow.

Balances on March 31:
Direct Materials: Job 306 = $14,000 Job 307 = $18,000
Direct Labor: Job 306= 18,000 Job 307 = 16,000
Applied Overhead: Job 306 = 9,000 Job 307 = 8,000

Costs during April:
Direct materials: Job 306 = 100,000 Job 307 = 170,000 Job 308 = 80,000
Direct Labor: Job 306 = 30,000 Job 307 = 56,000 Job 308 = 120,000
Applies Overhead: Job 306, 307, & 308 = =???
Status on April 30: Job 306 = Finished(sold) Job 307 = Finished (unsold) Job 308 = In process

Part 1: Determine the total of each production cost incurred for April (Direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including balances from March 31)

Part 2: Prepare journal entries for the month of April to record the following
a. Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs
including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.)
b. Assignment of direct materials, direct labor, and applied overhead costs to the Goods in
Process Inventory.
c. Transfer of Jobs 306 and 307 to the Finished Goods Inventory
d. Cost of goods sold for Job 306.
e. Revenue from the sale of Job 306.
f. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold
account. (the amount is not material.)
Part 3: Prepare a manufacturing statement for April (use a single line presentation for direct materials and show the details of overhead cost)