Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $370,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $19,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 28,000 $ 39,000 Direct labor 23,000 17,000 Applied overhead 11,500 8,500 Costs during April Direct materials 139,000 220,000 $ 110,000 Direct labor 103,000 153,000 104,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process *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).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $370,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $19,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 cash in April. Costs of the three jobs worked on in April follow.

	Job 306	Job 307	Job 308
Balances on March 31
Direct materials		$	28,000		$	39,000
Direct labor			23,000			17,000
Applied overhead			11,500			8,500
Costs during April
Direct materials			139,000			220,000	$	110,000
Direct labor			103,000			153,000		104,000
Applied overhead			?			?		?

Status on April 30	Finished (sold)	Finished (unsold)		In process

*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).

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