Marcelino Co.\'s March 31 inventory of raw materials is $88,000. Raw materials p
ID: 2529920 • 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.
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
Sales
Gross Profit
4.2
Raw materials
Goods in process
Finished goods
Total inventories
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 Underapplied overhead=(58000+20000+33000+22000+58000)-181000 = $10000 4.1Sales
680000 Less: Cost of goods sold 364000Gross Profit
3160004.2
Raw materials
125000Goods in process
271000Finished goods
513500Total inventories
909500