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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 process

Explanation / 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 inventory
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