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ID: 2531794 • Letter: R
Question
Required information
[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $391,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 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).
Cost of goods sold
Finished goods inventory
Raw materials inventory
Work in process inventory
Finished goods inventory
Raw materials inventory
Work in process inventory
Cost of goods sold
Finished goods inventory
Raw materials inventory
Work in process inventory
Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 31,000 $ 36,000 Direct labor 23,000 15,000 Applied overhead 11,500 7,500 Costs during April Direct materials 130,000 210,000 $ 105,000 Direct labor 103,000 155,000 104,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In processExplanation / Answer
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$31,000
$36,000
$67,000
Direct Labor
23,000
15,000
$38,000
Applied overhead
11,500
7,500
$19,000
Beginning goods in process
$65,500
$58,500
$0
$124,000
For April
Direct Materials
130,000
210,000
105,000
$445,000
Direct Labor
103,000
155,000
104,000
$362,000
Applied overhead
51,500
77,500
52,000
$181,000
Total costs added in April
$284,500
$442,500
$261,000
$988,000
Total costs (April 30)
$350,000
$501,000
$261,000
$1,112,000
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
$31,000
$36,000
$67,000
Direct Labor
23,000
15,000
$38,000
Applied overhead
11,500
7,500
$19,000
Beginning goods in process
$65,500
$58,500
$0
$124,000
For April
Direct Materials
130,000
210,000
105,000
$445,000
Direct Labor
103,000
155,000
104,000
$362,000
Applied overhead
51,500
77,500
52,000
$181,000
Total costs added in April
$284,500
$442,500
$261,000
$988,000
Total costs (April 30)
$350,000
$501,000
$261,000
$1,112,000
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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