Question

Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 28,000 22,000 11,000 44,000 13,000 6,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 133,000 100,000 215,000 150,000 $ 115,000 103,000 Finished (sold) Pinished (unsold) 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).

Answer 1

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Job 307 Job 30 Total A7 20. 44,00 Job 306 From March - Direet materials $ 28,000 - Direct Labour 2 2,000 - Applied overhead 11,000 13,000 35,000 17,500 - Beginning go arou 124,5oo ..d sin 61.000 63. 560 (12 2,15,000 1150,000 115,000 1.03,000 4, 63,000 3, 53,000 1,76,500 75,000 $1,500 - Direct Materials 1.33,000 Direct Labour 1,00,000 - Applied overhead 50,000 (50% of Direct , Labour Total costs added 2,83,000 in April (2) - Total cost . 3,44,000 [ April 307 (1 +2 2,69,500 7,92,500 4.40,000 11, 17,000 5103,500 2,69,500 Finished In process Staus on April - 30 Finished (unsold) csold) 5103,5 April 30 cost included in 364.000 72000+ 35000+ 3,53,000 17,500+ 1.76.50 117000 1.94 - 535, 2 3,88, Raw materials Direct Overhead Total cost Labour