The following information applies to the questions displayed below. Marcelino Co
ID: 2600190 • Letter: T
Question
The following information applies to the questions displayed below. Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $370,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $20,000; factory rent, $38,000; factory utilities, $24,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost Job 306 sold for $685,000 cash in April. Costs of the three jobs worked on in April follow. Job 306Job 307 Job 308 Balances on March 31 Direct materials Direct labor Applied overhead $30,000 25,000 12,500 $ 40,000 14,000 7,000 Costs during April Direct materials Direct labor 134,000 101,000 210,000$105,000 104,000 151,000 Applied overhead Status on April 30 Finished (sold) Finished (unsold) In process 1.71 points 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 From March Direct Materials 30,000 40,000 esc 4 6Explanation / Answer
Calculation of Gross Profit Sales 6,85,000 Less: Cost of Sales 3,53,000 Less: Underapplied Cost 14,000 3,67,000 (55000+20000+38000+24000+55000-178000) Gross Profit 3,18,000 Calculation of closing inventory Beg Balance 87,000 Add: Purchases 5,30,000 Less: Direct Material consumed -4,49,000 Less: Indirect material consumed -55,000 Closing Inventory 1,13,000
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