Question

Problem 19-1A 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 $85,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $29.000; factory rent, $31.000; factory utilities, $23,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 cash in April Costs of the three jobs worked on in April follow. 

 3. Prepare a schedule of cost of goods manufactured. 

Answer 1

Solution:
	MARCELINO COMPANY
	Schedule of Cost of Goods Manufactured
	For Month Ended April 30
	Direct materials used	452,000
	Direct labor used	357,000
	Factory overhead applied	178,500
	Total manufacturing costs	987,500
	Add: Work in process March 31	124,500
	Total cost of work in process	1,112,000
	Less: Work in Process April 30	254,500
	Cost of Goods manufactured	857,500
Working Notes:
Part 3
	MARCELINO COMPANY
	Schedule of Cost of Goods Manufactured
	For Month Ended April 30		From Below working Notes:
I	Direct materials used	452,000	E
II	Direct labor used	357,000	F
III	Factory overhead applied	178,500	G
IV=I+II+III	Total manufacturing costs	987,500
V	Add: Work in process March 31	124,500	D
VI = IV + V	Total cost of work in process	1,112,000
VII	Less: Work in Process April 30	254,500	Job 308
VIII = VI - VII	Cost of Goods manufactured	857,500
	We have to use data from part 1 .so I have to calculate it then use to get cost of goods manufactured for above computation.
Part I
		Job 306	Job 307	Job 308	April Total
	From March
	Direct Materials	$26,000	$40,000
A
	Direct Labor	20,000	19,000
B
	Applied overhead	10,000	9,500
C
D=A+B+C	Beginning goods in process	$56,000	$68,500	$0	$124,500
	For April
E	Direct Materials	132,000	220,000	100,000	452,000
f	Direct Labor	104,000	150,000	103,000	357,000
g= F x 50%	Applied overhead	52,000	75,000	51,500	178,500
H=E+f+g	Total costs added in April	288,000	445,000	254,500	987,500
I=D+H	Total costs (April 30)	$344,000	$513,500	$254,500	1,112,000
j	Status on April 30	Finished (sold)	Finished (unsold)	In process
	April 30 cost included in:	Cost of goods sold	Finished goods inventory	Goods in process inventory