Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $26,000; factory rent, $34,000; factory utilities, $23,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 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 $ 27,000 $ 40,000 Direct labor 22,000 15,000 Applied overhead 11,000 7,500 Costs during April Direct materials 135,000 215,000 $ 115,000 Direct labor 105,000 153,000 100,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Problem 19-1A Part 1 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).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $26,000; factory rent, $34,000; factory utilities, $23,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 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		$	27,000		$	40,000
Direct labor			22,000			15,000
Applied overhead			11,000			7,500
Costs during April
Direct materials			135,000			215,000	$	115,000
Direct labor			105,000			153,000		100,000
Applied overhead			?			?		?
Status on April 30	Finished (sold)	Finished (unsold)		In process

Problem 19-1A Part 1

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).

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