Question

Required information (The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $25,000; factory rent, $37,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. 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 $ 30,000 24,000 12,000 $ 39,000 13,000 6,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 $105,000 105,000 131,000 102,000 ? Finished (sold) 210,000 153,000 ? Finished (unsold) 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 $ $ 30,000 24,000 12,000 39,000 13,000 6,500 $ 69,000 37,000 18,500 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 131,000 102,000 210,000 153,000 105,000 105,000 446,000 360.000 Total costs (April 30) Finished (sold) Finished (unsold) In process Status on April 30 April 30 cost included in

Answer 1

Job 306 Job 307 Job 308 April Total from March # 69,000 $ 37,000 18,500 & 124,00 Direct Materials $30,000 $ 39,000 Direct labor $24,000 $13,000 Applied overhead $12,000 $ 6,500 Beginrung goods in process $ 66,000 $58,500 for April Direct Materials $ 131,000 $ 210,000 $ 165,000 $ 446,000 Direct labor $ 102,000 $ 153,000 & 105,000 & 360,000 Applied overhead $ 51,000 & 76,00 52,500 $ 180,000 Total cost added in April & 284,000 & 439,500 $ 262,500 986,000 Total casts (April 30) & 350,000 $ 498,000 $ 262,500 $ 1, 110, 500 Status on April 30 finished (old) finished (unsold) in process April 30 cost included in; Cost of goods finished goods work in process sold inventary inventory Calculation: Applied overhead 50% of direct labor. Job 306 Applied overhead $ 102,000 X 50% & 51,000 Job 3070 Applied overhead $ 153,000 X 50% $ 76,500 Job 3080 Applied overhead $ 105,000X 50% $ 52,500 E