Question

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Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $24,000; factory rent, $31,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 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		$	27,000			$	37,000
Direct labor			23,000				16,000
Applied overhead			11,500				8,000
Costs during April
Direct materials			131,000				210,000			$	120,000
Direct labor			105,000				153,000				102,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

rev: 03_15_2018_QC_CS-121813

Required:
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).

Required information

[The following information applies to the questions displayed below.]

Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $24,000; factory rent, $31,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 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		$	27,000			$	37,000
Direct labor			23,000				16,000
Applied overhead			11,500				8,000
Costs during April
Direct materials			131,000				210,000			$	120,000
Direct labor			105,000				153,000				102,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

rev: 03_15_2018_QC_CS-121813

Required:
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 $27,000 $37,000 $64,000 Direct Labor 23,000 16,000 39,000 Applied overhead 11,500 8,000 19,500 Beginning goods in process $0 For April Direct Materials 131,000 210,000 120,000 461,000 Direct Labor 105,000 153,000 102,000 360,000 Applied overhead 0 Total costs added in April 236,000 363,000 222,000 821,000 Total costs (April 30) $0 Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in:

Answer 1

	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	$     27,000	$    37,000		$       64,000
Direct Labor	$     23,000	$    16,000		$       39,000
Applied Overheads	$     11,500	$       8,000		$       19,500
Beginning goods in process	$     61,500	$    61,000	0	$   1,22,500
For April
Direct Materials	$ 1,31,000	$ 2,10,000	$ 1,20,000	$   4,61,000
Direct Labor	$ 1,05,000	$ 1,53,000	$ 1,02,000	$   3,60,000
Applied Overheads	$     52,500	$    76,500	$     51,000	$   1,80,000
Total cost added in April	$ 2,88,500	$ 4,39,500	$ 2,73,000	$ 10,01,000
Total cost (April 30)	$ 3,50,000	$ 5,00,500	$ 2,73,000	$ 11,23,500
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

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