Question

Required information (The following information applies to the questions displayed below.] Rectangle Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $388,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $30,000; factory rent, $31,000; factory utilities, $19,000, and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 29,000 25,000 12,500 $ 35,000 17,000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 135,000 103,000 220,000 152,000 $105,000 103,000 Finished (sold) Finished (unsold) In process

Answer 1

Solution

MARCELINO COMPANY
Cost iof Goods manufactured
For the month ended April 30
Direct material	$     4,60,000.00
Direct labor	$     3,58,000.00
Manufacturing overhead applied	$     1,79,000.00*
Total manufacturing costs	$     9,97,000.00
Beginning work in process	$     1,27,000.00
Total cost of work in process	$ 11,24,000.00
Less: Ending work in process	$     2,59,500.00**
Cost of goods manufactured	$     8,64,500.00

*358000 x 50%

**Ending WIP = Direct material of job 308+ Direct labor of job 308 + (Direct labor of job 308 x 50%)