Question

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $377,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $22,000; factory rent, $39,000; 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		$	30,000			$	36,000
Direct labor			22,000				16,000
Applied overhead			11,000				8,000
Costs during April
Direct materials			133,000				200,000			$	115,000
Direct labor			102,000				153,000				100,000
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 $30,000 $36,000 $66,000 Direct Labor 22,000 16,000 38,000 Applied overhead 11,000 8,000 19,000 Beginning goods in process For April Direct Materials 133,000 200,000 115,000 448,000 Direct Labor 102,000 153,000 100,000 355,000 Applied overhead Total costs added in April Total costs (April 30) Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in:

Answer 1

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 Total From March Direct Materials $30,000 $36,000 $66,000 Direct Labor 22,000 16,000 38,000 Applied overhead 11,000 8,000 19,000 Beginning goods in process 63000 60000 123000 For April Direct Materials 133,000 200,000 115,000 448,000 Direct Labor 102,000 153,000 100,000 355,000 Applied overhead 51000 76500 50000 177500 Total costs added in April 286000 429500 265000 980500 Total costs (April 30) 349000 489500 265000 1103500 Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in: Cost of goods sold Finished goods Work in process