Question

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 29,000 20,000 10,000 $ 35,000 18,000 9,000 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 85,000 220,000 150,000 $100,000 105,000 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 tota assigned to each job (including the balances from March 31). Job 306 Job 307 Job 308 April Total $ $ 29,000 20,000 10,000 35,000 18,000 9,000 64,000 38,000 19,000 From March Direct Materials Direct Labor Applied overhead Beginning goods in process For April Direct Materials Direct Labor Applied overhead Total costs added in April 135,000 85,000 220,000 150,000 100,000 105,000 455,000 340,000 220,000 370,000 205,000 795,000 Total costs (April 30) Status on April 30 April 30 cost included in: Finished (sold) Cost of goods sold Finished (unsold) Finished goods inventory In process Work in process inventory

Answer 1

			Job 306	Job 307	Job 308	April
1)						total
From March
Direct materials			29,000	35,000	0	64,000
Direct labor			20,000	18,000	0	38,000
applied overhead			10,000	9,000	0	19,000
Beginning goods in process			59,000	62,000	0	121,000
For April
Direct materials			135,000	220,000	100,000	455,000
Direct labor			85,000	150,000	105,000	340,000
applied overhead			42500	75000	52500	170,000
Total costs added in April			262,500	445,000	257,500	965,000
total costs (April 30)			321,500	507,000	257,500	1,086,000
Satus on april 30			fin(sold)	fin(unsold)	in process
April costs included in :			COGS	finished	WIP
				goods
				inventory