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 Direct labor Applied overhead Costs during April Direct materials Direct labor $ 29,000 22,000 11,000 $ 40,000 15,000 7,500 133,000 101,000 205,000 153,000 $115,000 103,000 Applied overhead Finished (sold) Finished In Status on April 30 (unsold) process Problem 15-1A Part 3 3. Prepare a schedule of cost of goods manufactured. MARCELINO COMPANY Schedule of Cost of Goods Manufactured

Answer 1

		Marcelino Company
		Job 306	Job 307	Job 308	April Total
	Direct Material	$                    29,000.00	$                          40,000.00		$           69,000.00
	Direct Labor	$                    22,000.00	$                          15,000.00		$           37,000.00
	Applied Overhead	$                    11,000.00	$                            7,500.00		$           18,500.00
	Beginning goods in process	$                    62,000.00	$                          62,500.00		$       1,24,500.00
	For April
	Direct Material	$                 1,33,000.00	$                      2,05,000.00	$ 1,15,000.00	$       4,53,000.00
	Direct Labor	$                 1,01,000.00	$                      1,53,000.00	$ 1,03,000.00	$       3,57,000.00
	Applied Overhead(50% of Direct Labor cost)	$                    50,500.00	$                          76,500.00	$     51,500.00	$       1,78,500.00
	Total cost added in April	$                 2,84,500.00	$                      4,34,500.00	$ 2,69,500.00	$       9,88,500.00
	Total cost April 30th	$                 3,46,500.00	$                      4,97,000.00	$ 2,69,500.00	$     11,13,000.00
	April 30th	COGS	Finished goods unsold	WIP Inventory
	Overhead Overapplied/Underapplied
	Overhead applied to Jobs		$                      1,78,500.00
	Overhead incurred
	Indirect Material	$                    55,000.00
	Indirect Labor	$                    27,000.00
	Factory Rent	$                    37,000.00
	Factory Utilties	$                    23,000.00
	Factory Equipment-Depreciation	$                    55,000.00	$                      1,97,000.00
	Overhead underapplied($197000-$178500)		$                          18,500.00
	Marcelino Company
Ans 3)	Schedule of cost of goods manufactured
	For month ended April 30th
	Direct Material used	$                 4,53,000.00
	Direct Labor used	$                 3,57,000.00
	Factory overhead applied	$                 1,78,500.00
	Total Manufacturing cost	$                 9,88,500.00
	Add: WIP March 31st	$                 1,24,500.00
	Total cost of WIP	$              11,13,000.00
	Less: WIP April 30th	$               -2,69,500.00
	Cost of goods manufactued	$                 8,43,500.00