Question

Check my won Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $375,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $22,000, factory rent, $34,000; factory utilities, $22,000, and factory equipment depreciation, $56,000. 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 386 Job 307 Job 308 $ 28,000 24,000 12,000 $ 38,000 18,000 9.000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 132,000 101,000 ? Finished (sold) 210,000 151,000 ? Finished (unsold) $110,000 101,000 ? In process Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).

Answer 1

Job 306 Job 307 Job 308 April Total From March Direct Materials $ 28,000 $ 38,000 $ 66,000 Direct Labor $ 24,000 $ 18,000 $ 42,000 Applied Overhead $ 12,000 $ 9,000 $ 21,000 Beginning goods in process $ 64,000 $ 65,000 $ 1,29,000 For April Direct Materials $ 1,32,000 $ 2,10,000 $ 1,10,000 $ 4,52,000 Direct Labor $ 1,01,000 $ 1,51,000 S 1,01,000 $ 3,53,000 Applied Overhead $ 50,500 ($101,000 x 50%) $ 75,500 ($151,000 x 50%) $ 50,500 ($101,000 x 50%) $ 1,76,500 Total Costs added in April $ 2,83,500 $ 4,36,500 $ 2,61,500 $ 9,81,500 Total Costs (April 30) $ 3,47,500 $ 5,01,500 $ 2,61,500 $ 11,10,500 Status on April 30 Finished (Sold) Finished (Unsold) In Process April 30 cost included in Cost of Goods Sold Finished Goods Inventory Work in Process Inventory