Question

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 Balances on March 31 Direct materials $ 32,000 $ 36,000 Direct labor 20,000 17,000 Applied overhead 10,000 8,500 Costs during April Direct materials 137,000 210,000 $100,000 Direct labor 100,000 150,000 Applied overhead Finished Status on April 30 Finished (sold) (unsold) 2 101,000 ? In process 3. Prepare a schedule of cost of goods manufactured

Answer 1

Marcelino Company

Schedule of cost of goods manufactured

For month ended April 30

Direct materials used (137,000 + 210,000 + 100,000)	$447,000
Direct labor used (100,000 + 150,000 +101,000)	351,000
Factory overhead applied (351,000 * 50 %)	175,500
Total manufacturing costs	973,500
Add: Work in Process, March 31 (Working Note 1)	123,500
Total cost of work in process	1,097,000
Less: Work in process, April 30 (Working Note 2)	251,500
Cost of goods manufactured	$845,500

Working Note 1: Work in Process, March 31

	Job 306	Job 307	Job 308	Total
Direct materials	32,000	36,000	0	68,000
Direct labor	20,000	17,000	0	37,000
Applied overhead	10,000	8,500	0	18,500
Work in Process, March 31				123,500

Working Note 2: Work in process, April 30 (Job 308 - In process)

Direct materials used	100,000
Direct labor used	101,000
Factory overhead applied (101,000 * 50 %)	50,500
Work in process, April 30	251,500