Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $22,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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 22,000 19,000 Applied overhead 11,000 9,500 Costs during April Direct materials 132,000 210,000 $ 115,000 Direct labor 104,000 154,000 103,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process 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 Job 307 Job 308 April Total From March Direct Materials $28,000 $39,000 $67,000 Direct Labor 22,000 19,000 41,000 Applied overhead 11,000 9,500 20,500 Beginning goods in process $61,000 $67,500 $128,500 For April Direct Materials 132,000 210,000 115,000 457,000 Direct Labor 104,000 154,000 103,000 361,000 Applied overhead 0 Total costs added in April 236,000 364,000 218,000 818,000 Total costs (April 30) $0 Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in:

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 $86,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $22,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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			22,000			19,000
Applied overhead			11,000			9,500
Costs during April
Direct materials			132,000			210,000	$	115,000
Direct labor			104,000			154,000		103,000
Applied overhead			?			?		?
Status on April 30	Finished (sold)	Finished (unsold)		In process

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		Job 307		Job 308	April Total
From March
Direct Materials	$28,000	$39,000		$67,000
Direct Labor	22,000	19,000		41,000
Applied overhead	11,000	9,500		20,500
Beginning goods in process	$61,000	$67,500		$128,500
For April
Direct Materials	132,000	210,000	115,000	457,000
Direct Labor	104,000	154,000	103,000	361,000
Applied overhead				0
Total costs added in April	236,000	364,000	218,000	818,000
Total costs (April 30)				$0
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:

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