Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 $ 32,000 25,000 12,500 $ 37,000 16,000 8,000 Direct materials Direct labor Applied overhead Costs during April $105,000 102,000 Direct materials 138,000 104,000 215,000 151,000 Direct labor Applied overhead Finished (sold) Finished (unsold) In Status on April 30 process
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 $ 32,000 25,000 12,500 $ 37,000 16,000 8,000 Direct materials Direct labor Applied overhead Costs during April $105,000 102,000 Direct materials 138,000 104,000 215,000 151,000 Direct labor Applied overhead Finished (sold) Finished (unsold) In Status on April 30 process
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 $88,000. Raw materials purchases in April are $540,000, and
Transcribed Image Text:**Problem 19-1A Production Costs Computed and Recorded; Reports Prepared LO P1, P2, P3, P4**
*The following information applies to the questions displayed below.*
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw material purchases in April are $540,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 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 | $32,000 | $37,000 | |
| Direct labor | $25,000 | $16,000 | |
| Applied overhead | $12,500 | $8,000 | |
| **Costs during April** | | | |
| Direct materials | $138,000| $215,000| $105,000|
| Direct labor | $104,000| $151,000| $102,000|
| Applied overhead | ? | ? | ? |
| **Status on April 30** | Finished (sold) | Finished (unsold) | In process |
**Explanation of Table:**
The table outlines the costs related to three jobs (306, 307, 308) at Marcelino Co., with financial data covering direct materials, direct labor, and applied overhead for March 31 and April. The table distinguishes between costs present at the end of March and those incurred in April. Each job's April 30 status is also provided, indicating whether a job is sold, unsold, or in process. The applied overhead for April is to be calculated based on the predetermined overhead rate of 50% of direct labor cost.
Transcribed Image Text:**Problem 19-1A Part 3**
3. Prepare a schedule of cost of goods manufactured.
**MARCELINO COMPANY**
**Schedule of Cost of Goods Manufactured**
*For Month Ended April 30*
| Description | Amount |
|---------------------------------|--------------|
| Direct labor used | $ 357,000 |
| Direct materials used | $ 458,000 |
| Factory overhead applied | |
| Total manufacturing costs | $ 815,000 |
| Add: Work in process March 31 | |
| Total cost of work in process | $ 815,000 |
| Less: Work in process April 30 | |
| Cost of goods manufactured | $ 815,000 |
This table outlines the schedule for the cost of goods manufactured by Marcelino Company for the month ending April 30. It begins with direct labor and materials used, totaling $815,000 for manufacturing costs. The 'Add' and 'Less' sections indicate adjustments for work in process, ultimately determining the cost of goods manufactured as $815,000.
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