Marcelino Co.\'s March 31 inventory of raw materials is $88,000. Raw materials p
ID: 2529905 • Letter: M
Question
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $20,000; factory rent, $33,000; factory utilities, $22,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow.
Required: 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 the balances from March 31) Job 306 Job 307 Job 308 April Total From March Direct Materials Direct Labor Applied overhead 27,000 25,000 12,500 39,000 18,000 9,000 $ 66,000 43,000 21,500 Beginning goods in process For April 135,000 103,000 215,000 155,000 465,000 362,000 Direct Materials 115,000 Direct Labor 104,000 Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in 238,000 370,000 219,000 827,000 Finished (sold) Finished (unsold) In process
Explanation / Answer
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$27,000
$39,000
$66,000
Direct Labor
25,000
18,000
$43,000
Applied overhead
12,500
9,000
$21,500
Beginning goods in process
$64,500
$66,000
$0
$130,500
For April
Direct Materials
135,000
215,000
115,000
465,000
Direct Labor
103,000
155,000
104,000
362,000
Applied overhead
51,500
77,500
52,000
181,000
Total costs added in April
289,500
447,500
271,000
1,008,000
Total costs (April 30)
$354,000
$513,500
$271,000
1,138,500
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$27,000
$39,000
$66,000
Direct Labor
25,000
18,000
$43,000
Applied overhead
12,500
9,000
$21,500
Beginning goods in process
$64,500
$66,000
$0
$130,500
For April
Direct Materials
135,000
215,000
115,000
465,000
Direct Labor
103,000
155,000
104,000
362,000
Applied overhead
51,500
77,500
52,000
181,000
Total costs added in April
289,500
447,500
271,000
1,008,000
Total costs (April 30)
$354,000
$513,500
$271,000
1,138,500
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
Goods in process inventory