Question

Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $382.000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 28,000 22,000 11,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead $ 44,000 13,000 6,500 133,000 100,000 215,000 150,000 $ 115,000 103,000 In Status on April 30 Finished (sold) Finished (unsold) process

Answer 1

MARCELINO COMPANY Schedule of cost of goods manufactured For Month Ended April 30 Direct materials used Direct labor used Factory overhead Total manufacturing overhead Add: work in process March 31 Total cost of work in process Less: work in process April 30 Cost of goods manufactured 463,000 353,000 176,500 992,500 124,500 1,117,000 -269,500 847,500

solution: working: Job 306 Job 307 Job 308 april total 28,000 22,000 11,000 61,000 44,000 13,000 6,500 63,500 72,000 35,000 17,500 0124,500 from march Direct materials Direct labor Applied overhead Beginning goods in process for April Direct materials Direct labor Applied overhead (50% of direct labor cost) total cost added in april total cost (april 30) Status on April 30 april 30 cost included in 133,000 215,000 115,000 463,000 100,000 150,000 103,000 353,000 50,000 75,000 51,500 176,500 283,000 440,000 269,500 992,500 344,000 503,500 269,500 1,117,000 Finished (sold) Finished (unsold) in process COGS WIP FG