Question

Required Information Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (The following information applies to the questions displayed below) Marcelino Co.'s March 31 Inventory of raw materials is $88,000 Raw materials purchases in April are $540,000, and factory payroll cost In April is $376,000. Overhead costs incurred in Aprilare: Indirect materials, $60,000, Indirect labor, $22,000 factory rent, $39.000; factory utilities. $23.000, and factory equipment depreciation, 561,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 cash in April. Costs of the three jobs worked on in April follow, Job 306 306 307 3ob3es $ 26,000 23,000 11,5ee $39,000 16,000 8,000 Balances on March 31 Direct materials Direct labor Applied overhead costs during April Direct materials Direct labor Applied overhead Status on April be 139,000 102,000 200, 151,000 $105,000 101, Finished (sold) Finished (unsold) In process Problem 02-1A Part 3 3. Prepare a schedule of cost of goods manufactured. MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Tot of work process Coul of goods manufactured

Answer 1

MARCELINO COMPANY

Schedule of Cost Of Goods Manufactured

For the year ended April 30

Direct Material Used	$ 444,000
Direct Labor Used	$ 354,000
Factory Overhead Applied	$ 177,000
Total Manufacturing Cost	$ 975,000
Add: Work in process march 31	$ 123,500
Total Cost of work in process	$ 1,098,500
Less: Work in process April 30	( $ 256,500)
Cost of goods Manufactured	$ 842,000

Explanation:

1) Direct Material :

= $ 139,000 + $ 200,000 + $ 105,000

= $ 444,000

2) Direct Labor:

= $ 102,000 + $ 151,000 + 101,000

= $ 354,000

3) Overhead Applied:

= 50% of labor cost

= $ 354,000 × 50%

= $ 177,000

4) Work In Process: ( Beginning)

= $ 26,000 + $ 23,000 + $ 11,500 + $ 39,000 + $ 16,000 + 8000

= $ 123,500

5) Work In Process : ( Ending)

$ 105,000 + $ 101,000 + ( $ 101,000 ×50%)

= $ 256,500