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ID: 2510372 • Letter: R
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 $520,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $27,000; factory rent, $32,000; factory utilities, $22,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 cash in April. Costs of the three jobs worked on in April follow.
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).
Explanation / Answer
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$25,000
$41,000
$66,000
Direct Labor
24,000
15,000
$39,000
Applied overhead
12,000
7,500
$19,500
Beginning goods in process
$61,000
$63,500
$0
$124,500
For April
Direct Materials
139,000
215,000
120,000
$474,000
Direct Labor
100,000
154,000
102,000
$356,000
Applied overhead
50,000
77,000
51,000
$178,000
Total costs added in April
$289,000
$446,000
$273,000
$1,008,000
Total costs (April 30)
$350,000
$509,500
$273,000
$1,132,500
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$25,000
$41,000
$66,000
Direct Labor
24,000
15,000
$39,000
Applied overhead
12,000
7,500
$19,500
Beginning goods in process
$61,000
$63,500
$0
$124,500
For April
Direct Materials
139,000
215,000
120,000
$474,000
Direct Labor
100,000
154,000
102,000
$356,000
Applied overhead
50,000
77,000
51,000
$178,000
Total costs added in April
$289,000
$446,000
$273,000
$1,008,000
Total costs (April 30)
$350,000
$509,500
$273,000
$1,132,500
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
Goods in process inventoryRelated Questions
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