Question

Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $28,000; factory rent, $33,000; factory utilities, $21,000; and factory equipment depreciation, $52,000. 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
Balances on March 31
Direct materials		$	26,000			$	40,000
Direct labor			22,000				15,000
Applied overhead			11,000				7,500
Costs during April
Direct materials			132,000				215,000			$	110,000
Direct labor			102,000				153,000				102,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

3. Prepare a schedule of cost of goods manufactured.

Answer 1

Marcelino Company
Scheduled of cost of good manufactured
For Month ended april 30
Direct Materials used (see Note 1)	$457,000
Direct Labor used (See Note 2)	$357,000
Factory overhead applied (See Note 3)	$178,500
Total manufacturing costs	$992,500
Add: work in process March 31(see Note 4)	$121,500
Total cost of work in process	$1,114,000
Less: work in process april 30 (see Note 5)	($263,000)
Cost of goods manufactured	$851,000

Working note:-

	Job 306	Job 307	Job 308	Total
From March
Direct Materials	$26,000	$40,000		$66,000
Direct labor	22,000	15,000		$37,000
Applied overhead	11,000	7,500		$18,500
Beginning good in process	$59,000	$62,500		$121,500 (Note 4)
For april
Direct Materials	$132,000	$215,000	$110,000	$457,000 (Note 1)
Direct labor	102,000	153,000	102,000	$357,000 (Note 2)
Applied overhead (50% of direct labor)	51,000 (102,000 ×50%)	76,500 (153,000 ×50%)	51,000 (102,000 ×50%)	178,500 (Note 3)
Total costs added in april	285,000	444,500	263,000	992,500
Total cost (april 30)	$344,000 (59,000 + 285,000)	$507,000 (444,500 + 62,500)	$263,000 (Note 5)	$1,114,000 (121,500 + 992,500)
Status on april 30	Finished (sold)	Finished (unsold)	in process
April 30 cost included in	cost of good sold	Finished good inventory	work in process inventory