Marcelino Co\'s March 31 inventory of raw materials is $87000. Raw materials pur
ID: 2532640 • Letter: M
Question
Marcelino Co's March 31 inventory of raw materials is $87000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $25,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost Job 306 is sold for $670,000 cash in April. Costs of the three jobs worked on in April follow 306 Balances on March 31 Direct materials Direct labor Applied overhead $ 31,000 44,800 16,800 8,800 Costs during April 132,866 182,000 220,800 $105,e00 102,880 Direct materials Direct labor Applied overhead Status on April 30 154,800 Finished Finished (unsold) In process a. Materials purchases (on credit) b. Direct materials used in production c. Direct labor paid and assigned to Work in Process Inventory d. Indirect labor paid and assigned to Factory Overhead e. Overhead costs applied to Work in Process Inventory f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory h. Cost of goods sold for Job 306 i. Revenue from the sale of Job 306Explanation / Answer
a Raw materials Inventory 600000 Accounts Payable 600000 b Work in progress inventory 457000 Raw materials Inventory 457000 c Work in progress inventory 358000 Csah 358000 d Factory Overhead 25000 Cash 25000 e Work in progress inventory 179000 Factory Overhead 179000 f(1) Factory Overhead 59000 Raw materials Inventory 59000 f(2) Factory Overhead 19000 Cash 19000 f(3) Factory Overhead 56000 Accumulated depriciation - Factory Equipment 56000 f(4) Factory Overhead 38000 Cash 38000 g Finished goods inentory 736000 Work in progress inentory 736000 (285000+451000) h Cost of goods sold 285000 Finished goods inentory 285000 i Cash 670,000 Sales 670,000 For March Job 306 Job 307 Job 308 April total Direct material 31000 44000 75000 Direct labor 22000 16000 38000 Applied Overhead 11000 8000 19000 Beginning goods in process 64000 68000 0 132000 For April Direct material 132000 220000 105000 457000 Direct labor 102000 154000 102000 358000 Applied Overhead 50% of DL 51000 77000 51000 179000 Total Cost added in april 285000 451000 258000 994000