Marcelino Co.\'s March 31 inventory of raw materials is $88,000. Raw materials p
ID: 2585495 • 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 $366,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $25,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 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 $ 31,000 $ 41,000 Direct labor 23,000 15,000 Applied overhead 11,500 7,500 Costs during April Direct materials 136,000 210,000 $ 100,000 Direct labor 101,000 150,000 104,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process
Explanation / Answer
Status on April 30
1) Cost of finished goods sold = Job 306 = 353,000...........final answer
2) Cost of Finished ( unsold) in process = Job 307 + Job 308 = 498500 + 256000 = 754500......final answer
Job 306 Job 307 Job 308 Material 31000 41000 Labour 23000 15000 OH 11500 7500 Balance on 31 March 65500 63500 0 April Material 136000 210000 100000 Labor 101000 150000 104000 Over head @ 50% of Labor 50500 75000 52000 Total cost 353000 498500 256000