Marcelino Co.\'s March 31 inventory of raw materials is $80,000. Raw materials p
ID: 2472021 • Letter: M
Question
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. 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 depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 29,000 $ 35,000 Direct labor 20,000 18,000 Applied overhead 10,000 9,000 Costs during April Direct materials 135,000 220,000 $ 100,000 Direct labor 85,000 150,000 105,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process
Explanation / Answer
JOB 306 JOB 307 JOB 308 Total March 31. Balances: Direct Materials 29,000 35,000 64,000 Direct Labor 20,000 18,000 38,000 Overhead Applied 10,000 9,000 - 19,000 Total Balance of Mar 31. cost 59,000 62,000 - 121,000 Costs Incurred in April Direct Materials 135,000 220,000 100,000 455,000 Direct Labor 85,000 150,000 105,000 340,000 Overhead Applied @50% of Direct Labor 42,500 75,000 52,500 170,000 Total Costs Incurred in April 262,500 445,000 257,500 965,000 Total Job cost 321,500 507,000 257,500 1,086,000 Status on Apr 30 FG (sold) FG (unsold) WIP