Question

Saved Required information [The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $377,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor, $26,000; factory rent, $34,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 cash in April . Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 36,000 17,000 8,500 $ 32,000 20,000 10,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 137,000 100,000 210,000 150,000 2 Finished (unsold) $100,000 101,000 2 In process Pinished (sold) Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cos assigned to each job (including the balances from March 31).

Answer 1

Answer-:

Total cost for a job includes beginning balance and direct materials, direct labour and manufacturing overhead for current month.

so, total production cost are as follows-:

Job 306 Job 307 Job 308 April Total From March Direct Materials Direct Labour Applied Overhead Beginning Goods in Process (A) 32,000 20,000 10,000 62,000 36,000 17,000 8,500 61,500 68,000 37,000 18,500 123,500 0 For April Direct Materials Direct Labour Applied overhead (50% of direct labour) Total costs added in April (B) Total costs (A+B) 137,000 100,000 50000 287,000 349,000 210,000 150,000 75000 435,000 496,500 100,000 101,000 50500 251,500 251,500 447,000 351,000 175500 973,500 1,097,000 Status on April 30 April 30 cost included in Finished(sold) Finished(unsold) In Process Cost of Goods Sold Finished Goods Inventory Work in Process Inventory

Thankyou........