Question

Required information Problem 15-1A 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 $87,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $27,000; factory rent, $37,000; factory utilities, $23,000; and factory equipment depreciation, $55,000. 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. Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 29,000 22,000 11,000 $ 40,000 15,000 7,500 Direct labor Applied overhead Costs during April Direct materials Direct labor 133,000 101,000 205,000 153,000 $115,000 103,000 Applied overhead tinished (unsold) Finished In Status on April 30 (sold) process Problem 15-1A Part 1 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 308 April Total Job 306 Job 307

Answer 1

	Job 306		Job 307		Job 308		April total
From March
Direct materials	$29,000		$40,000
Direct labor	$22,000		$15,000
Applied overhead	$11,000		$7,500
Beginning goods in process	$62,000		$62,500
For April
Direct materials	$133,000		$205,000		$115,000		$453,000
Direct labor	$101,000		$153,000		$103,000		$357,000
Applied overhead	$50,500		$76,500		$51,500		$178,500
Total costs added in April	$284,500		$434,500		$269,500		$988,500
Total costs (April 30)	$346,500		$497,000		$269,500
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in	Cost of goods sold		Finished good inventory		Work in process
Applied overhead
Job 306	$50,500	101000*50%
Job 307	$76,500	153000*50%
Job 308	$51,500	103000*50%