Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1
ID: 2585606 • Letter: P
Question
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 The following information applies to the questions displayed below Marcelino Co.s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $364,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor $22,000; factory rent, $39,000; factory utilities, S21,000: 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 Direct labor Applied overhead 26,00043,000 17,803 8,500 25,080 12,500 Costs during April Direct materials Direct labor Applied overhead Status on April 30 132,080 181,0ee 210,000 $115,000 108,800 151,800 Finished In process Finished (sold) (unsold) 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 26,000 25,000 12,500 43,000 17,000 8,500 $ 69,000 42,000 21,000 Beginning goods in process For April 210,000 151,000 457,000 352,000 Direct Materials 132,000 115,000 Direct Labor 101,000 100,000 Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in: Finished (sold) Finished (unsold) In processExplanation / Answer
JOB 306 JOB 307 JOB 308 April Total From March Direct Material 26000 43000 69000 Direct Labour 25000 17000 42000 Applied Overheads 12500 8500 21000 Beginning Goods in Process 63500 68500 132000 For-April Direct material 132000 210000 115000 457000 Direct Labour 101000 151000 100000 352000 Applied Overheads 50500 75500 50000 176000 (50% of labour cost) (101000*50%) (151000*50%) (100000*50%) Total Cost added in April 283500 436500 265000 985000 Total Cost(April 30) 347000 505000 265000 1117000 Status on April 30 Finished(Sold) Finished(Unsold) In Process April 30 Cost included in Cost of Goods Sold Finished Goods Work in Process