Question

Required information [The following information applies to the questions displayed below) Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000: indirect labor $28,000; factory rent, $39.000; factory utilities, $20,000; and factory equipment depreciation. $59.000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow Job 386 Job 37 Job 388 40,000 $ 25,000 23,00 11,500 $40,000 17.000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 135.000 100,000 200,000 152,000 $100,000 182,000 Finished (sold) Finished (unsold) In process 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 Direct Lahn $ 25.000 40.000 s 65,000

Answer 1

Please find below table useful to compute desired results: -

April Total =SUM(G3:13) =SUM(G4:14) =SUM(G5:15) =SUM(G6:16) А BC DE H 1 Inventory of raw materials 89000 Req. 1 Job 306 Job 307 Job 308 2 Raw material purchased in april 550000 From March 3 Factory payroll cost 382000 Direct Materials =B12 =C12 4 Indirect materials 56000 Direct Labor =B13 =C13 5 Indirect Labor 28000 Applied overhead =B14 =C14 6 Factory rent 39000 Beginning goods in process =SUM(G3:65) =SUM(H3:H5) =SUM(13:15) 7 Factory Utilities 20000 For April 8 Depreciation - Factory equipment 59000 Direct Materials =B16 =C16 =D16 9 Job 306 sold for cash 655000 Direct Labor =B17 =C17 =D17 10 Job 306 Job 307 Job 308 Applied overhead(50% of DL) =G9*50% =H9*50% =19*50% 11 Balances on March 31 Total costs added in April =SUM(G8:G10) =SUM(H8:H10) =SUM(18:110) 12 Direct materials 25000 40000 Total costs (April 30) =G6+G11 =H6+H11 =16+111 13 Direct labor 23000 17000 Status on April 30 Finished (sold) Finished (unsold) In process 14 Applied overhead 11500 8500 April 30 cost included in: Cost of goods sold Finished goods inventory Goods in process inventory 15 Costs during April 16 Direct materials 135000 200000 100000 17 Direct Labor 100000 152000 102000 =SUM(G8:18) =SUM(G9:19) =SUM(G10-110) =SUM(J8:J10) =J6+J11 Activate Win

N Debit =D2 18 ор R Credit Req. 3 Schedule of cost of goods manufactured =N2 For month ended April 30 Direct materials used =N4 Direct labor used =J9 Factory overhead applied =J10 EN6 Total manufacturing costs =SUMR4:R6) Add: Work in Process, March 31 =J6 =N8 Total cost of work in Process =R7+R8 Less: Work in Process, April 30 =112 =N10 Cost of goods manufactured =R9-R10 -J9 =D5 K L M 1 Req. 2 Sr. No. Account titles and Explanations Raw materials inventory Accounts Payable Work in Process inventory Raw materials inventory Work in Process inventory Cash Factory overhead Cash Work in Process inventory Factory overhead Factory overhead Raw materials inventory Factory overhead Cash Factory overhead Accumulated depreciation - Factory equipment Factory overhead Cash 10 Finished goods inventory Work in Process inventory 11 Cost of goods sold Finished goods inventory 12 Cash Sales 3 Cost of goods sold Factory overhead =N24 =N22 =D7 M =D8 =R13-R14-R15 1=D6 =N12 Sales Less: Cost of Goods Sold =N14 Less: Underapplied overhead Req. 4 Gross profit =N16 Reg. Req. 5 Inventories =N18 Raw materials Work in Process =N20 Finished Goods Total Inventories =N22 =J12-112 =D1+D2-J8-D4 =112 =H12 =SUM(R19:R21) 1=G12 =D9 =N24 =SUM(D4:D8)-J10 1=N26

End results would be as follows: -

с H Job 306 Job 307 Job 308 April Total DE 89,000 Req. 1 550.000 382,000 56,000 28.000 39,000 20.000 59,000 655.000 Job 308 25,000 23.000 11,500 59,500 40.000 17,000 8.500 65,500 А в 1 Inventory of raw materials 2 Raw material purchased in april 3 Factory payroll cost 4. Indirect materials 5 Indirect Labor 6 Factory rent 7 Factory Utilities 8 Depreciation - Factory equipment 9 Job 306 sold for cash 10 Job 306 11 Balances on March 31 12 Direct materials 25,000 13 Direct labor | 23,000 14 Applied overhead 11.500 15 Costs during April 16 Direct materials 135,000 17 Direct Labor | 100,000 65,000 40.000 20.000 125,000 From March Direct Materials Direct Labor Applied overhead Beginning goods in process For April Direct Materials Direct Labor Applied overhead(50% of DL) Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in: Job 307 135,000 100,000 50.000 285,000 344,500 Finished (sold) Cost of goods sold 200,000 152,000 76.000 428.000 493,500 Finished (unsold) Finished goods inventory 100,000 102.000 51.000 253,000 253,000 In process Goods in process inventory 435.000 354.000 177.000 966,000 1,091,000 40,000 17.000 8,500 200.000 152.000 100.000 102.000 Activate Windows

P Q R Req. 3 | Schedule of cost of goods manufactured For month ended April 30 Direct materials used 435.000 Direct labor used 354.000 Factory overhead applied | 177,000 Total manufacturing costs 966,000 Add: Work in Process, March 31 125,000 Total cost of work in Process 1,091,000 Less: Work in Process, April 30 253,000 Cost of goods manufactured 838.000 KL м 1 Reg. 2 | Sr. No. Account titles and Explanations 1 Raw materials inventory Accounts Payable 2 Work in Process inventory Raw materials inventory 3 Work in Process inventory Cash 4 Factory overhead Cash 5 Work in Process inventory Factory overhead 6 Factory overhead Raw materials inventory 7 Factory overhead Cash 8 Factory overhead Accumulated depreciation - Factory equipment 9 Factory overhead Cash 10 Finished goods inventory Work in Process inventory 11 Cost of goods sold Finished goods inventory 12 Cash Sales 13 Cost of goods sold Factory overhead N O Debit Credit 550.000 550,000 435.000 435,000 354,000 354,000 28.000 28,000 177.000 177,000 56.000 56.000 20.000 20,000 59,000 59.000 39,000 39,000 838.000 | 838.000 344.500 344,500 655.000 655.000 25,000 25,000 Sales Less: Cost of Goods Sold Less: Underapplied overhead Req. 4 Gross profit 655.000 344,500 25.000 285,500 Req. 5 Inventories Raw materials Work in Process Finished Goods Total Inventories 148.000 253,000 493,500 894.500