Question

Required information [The following information applies to the questions displayed below.) 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 Finished (unsold) In process (sold)

Answer 1

				Job 306	Job 307	Job 308
	Balances on March 31
	Direct Materials			$   28,000.00	$   37,000.00
	Direct Labor			$   24,000.00	$   15,000.00
	Applied OH			$   12,000.00	$     7,500.00
			(A)	$   64,000.00	$   59,500.00
	Costs during April
	Direct Materials			$ 133,000.00	$ 215,000.00	$ 110,000.00
	Direct Labor			$ 100,000.00	$ 152,000.00	$ 104,000.00
	Applied OH			$   50,000.00	$   76,000.00	$   52,000.00
			(B)	$ 283,000.00	$ 443,000.00	$ 266,000.00
	Cost		(A+B)	$ 347,000.00	$ 502,500.00	$ 266,000.00
	Sales			$ 655,000.00
4.1)	Gross Profit			$ 308,000.00
4.2)	Finished Goods				$ 502,500.00

Workings:

Predetermined OH rate =			50% of direct labor cost
		Job 306	Job 307	Job 308
Direct Labor		$ 100,000.00	$ 152,000.00	$ 104,000.00
Applied OH		$   50,000.00	$   76,000.00	$   52,000.00