Question

Marcelino Co's March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $388,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $28,000; factory rent, $31,000; factory utilities, $19,000; and factory equipment depreciation, $54,000. 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 Job 307 Job 308 $ 32,000 25,000 12,500 $ 44,000 14,000 7.000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 137,000 104,000 7. Finished (sold) 215,000 154,000 2 Finished (unsold) $120,000 102,000 2 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). Job 306 Job 307 Job 308 April Total $ $ 32,000 25,000 12,500 69,500 44,000 14,000 7.000 65,000 $ 76,000 39,000 19,500 $ 134,500 $ $ $ 0 From March Direct Materials Direct Labor Applied overhead Beginning goods in process For April Direct Materials Direct Labor Applied overhead Total costs added in April 137,000 104.000 215,000 154,000 120,000 102,000 472,000 360,000 0 832,000 241,000 369,000 222,000 $ 0 Total costs (April 30) Status on April 30 April 30 cost included in: Finished (sold) Cost of goods sold Finished (unsold) Finished goods inventory In process Work in process inventory

Answer 1

`	Job 306	Job 307	Job 308	April Total
From March
Direct materials	$32,000	$44,000		$76,000
Direct labor	$25,000	$14,000		$39,000
Applied overhead	$12,500	$7,000		$19,500
Beginning goods in process	$69,500 [$32,000 + $25,000 + $12,500]	$65,000 [$44,000 + $14,000 + $7,000]		$134,500
From April
Direct materials	$137,000	$215,000	$120,000	$472,000
Direct labor	$104,000	$154,000	$102,000	$360,000
Applied overhead	$52,000 [Direct labor x 50%] [$104,000 x 50%]	$77,000 [Direct labor x 50%] [$154,000 x 50%]	$51,000 [Direct labor x 50%] [$102,000 x 50%]	$180,000
Total costs added in April	$293,000 [$137,000 + $104,000 + $52,000]	$446,000 [$215,000 + $154,000 + $77,000]	$273,000 [$120,000 + $102,000 + $51,000]	$1,012,000
Total costs (April 30)	$362,500 [$69,500 + $293,000]	$511,000 [$65,000 + $446,000]	$273,000	$1,146,500
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