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Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $387,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $26,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 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		$	32,000			$	40,000
Direct labor			22,000				15,000
Applied overhead			11,000				7,500
Costs during April
Direct materials			139,000				210,000			$	115,000
Direct labor			105,000				154,000				102,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

3. Prepare a schedule of cost of goods manufactured.

Answer 1

Given Data
Particulars	Job 306	Job 307	Job 308	April Total
Balances on March 31
Direct Materials	32,000	40,000	-	72,000
Direct Labor	22,000	15,000	-	37,000
Applied Overheads	11,000	7,500	-	18,500
Beginning Work-in-Progress	65,000	62,500	-	127,500
Costs during April :
Direct Materials	139,000	210,000	115,000	464,000
Direct Labor	105,000	154,000	102,000	361,000
Applied Overheads	52,500	77,000	51,000	180,500
Total Costs added in April	296,500	441,000	268,000	1,005,500
Total Costs (April 30)	361,500	503,500	268,000	1,133,000
Status on April 30	Finished (Sold)	Finished (Sold)	In Process
April 30 Costs included in	COGS	COGS	WIP
Preparation of Cost of goods Manufactured
Mercelino Company
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Particulars	$
Direct Materials	464,000
Direct Labor	361,000
Factory Overheads Applied	180,500
Total Manufacturing Costs	1,005,500
Add : Work-in-Process, March 31	127,500
Total Cost of Work-in-Process	1,133,000
Less : Work-in-Process, April 30	268,000
Cost of Goods Manufactured	865,000