Question

Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $26,000; factory rent, $40,000; factory utilities, $20,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 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		$	28,000			$	39,000
Direct labor			25,000				17,000
Applied overhead			12,500				8,500
Costs during April
Direct materials			135,000				205,000			$	115,000
Direct labor			104,000				152,000				104,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process
MARCELINO COMPANYSchedule of Cost of Goods ManufacturedFor Month Ended April 30Total manufacturing costs0Total cost of work in process0Cost of goods manufactured$0

Answer 1

	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	$     28,000	$    39,000		$       67,000
Direct Labor	$     25,000	$    17,000		$       42,000
Applied Overheads	$     12,500	$       8,500		$       21,000
Beginning goods in process	$     65,500	$    64,500	0	$   1,30,000
For April
Direct Materials	$ 1,35,000	$ 2,05,000	$ 1,15,000	$   4,55,000
Direct Labor	$ 1,04,000	$ 1,52,000	$ 1,04,000	$   3,60,000
Applied Overheads	$     52,000	$    76,000	$     52,000	$   1,80,000
Total cost added in April	$ 2,91,000	$ 4,33,000	$ 2,71,000	$   9,95,000
Total cost (April 30)	$ 3,56,500	$ 4,97,500	$ 2,71,000	$ 11,25,000
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in :	Cost of goods sold	Finished goods inventory	Work in process inventory
Notes :
For April
Applied Overheads	=	Direct Labor X 50%
Total cost (April 30)	=	Beginning goods in process + Total cost added in April