Question

Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $381,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $25,000; factory rent, $36,000; factory utilities, $24,000; and factory equipment depreciation, $55,000. 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 306 Job 307 Job 308 $ 28,000 24,000 12,000 $ 37,000 15,000 7,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 133,000 100,000 215,000 152,000 $110,000 104,000 Finished (sold) Finished (unsold) In process

Answer 1

Answer-1-Determine the total of each production cost incurred for April:-

	Job 306		Job 307		Job 308		April Total
From March
Direct Materials	$28,000		$37,000				$65,000
Direct Labor	24,000		15,000				39,000
Applied overhead	12,000		7,500				19,500
Beginning goods in process	$64,000		$59,500		0		$123,500
For April
Direct Materials	133,000		215,000		110,000		458,000
Direct Labor	100,000		152,000		104,000		356,000
Applied overhead (50% of direct labor)	50,000		76,000		52,000		178,000
Total costs added in April	283,000		443,000		266,000		992,000
Total costs (April 30)	347,000		502,500		266,000		$1,115,500
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in:	Cost of Goods Sold		Finished Goods Inventory		Work in Process Inventory

  MARCELINO COMPANY
Schedule of Cost of Goods Manufactured

For the Month Ended April 30

Direct materials used	$458,000
Direct labor used	$356,000
Factory overhead applied	$178,000
Total manufacturing costs	$992,000
Add: Work in process March 31	$123,500
Total cost of work in process	$1,115,500
Less: Work in process April 30	$266,000
Cost of goods manufactured	$849,500

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