Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 $ 26,000 $ 40,000 24,000 12,000 16,000 8,000 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 March Direct materials Direct labor Overhead applied Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Total costs Status on April 30 April 30 cost included in: Additional Information a. Raw Materials Inventory has a March 31 balance of $87,000. b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $57,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $655,000 cash in April. $ 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). Job 306 26,000 24,000 12,000 131,000 104,000 ? Finished (sold) 131,000 104,000 Finished (sold) Finished (unsold) $ 210,000 $ 110,000 155,000 103,000 ? Job 307 Job 308 40,000 16,000 8,000 210,000 155,000 Finished (unsold) In process Job 308 In process 110,000 103,000 April Total 451,000 362,000
Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 $ 26,000 $ 40,000 24,000 12,000 16,000 8,000 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 March Direct materials Direct labor Overhead applied Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Total costs Status on April 30 April 30 cost included in: Additional Information a. Raw Materials Inventory has a March 31 balance of $87,000. b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $57,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $655,000 cash in April. $ 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). Job 306 26,000 24,000 12,000 131,000 104,000 ? Finished (sold) 131,000 104,000 Finished (sold) Finished (unsold) $ 210,000 $ 110,000 155,000 103,000 ? Job 307 Job 308 40,000 16,000 8,000 210,000 155,000 Finished (unsold) In process Job 308 In process 110,000 103,000 April Total 451,000 362,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Required information
[The following information applies to the questions displayed below.]
Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
March
Direct materials
Direct labor
Overhead applied
Work in process, beginning
April
Direct materials
Direct labor
Overhead applied
Costs added in April
Total costs
Status on April 30
April 30 cost included in:
$
Job 306
26,000
24,000
12,000
Job 306
131,000
104,000
$ 26,000
24,000
12,000
Additional Information
a. Raw Materials Inventory has a March 31 balance of $87,000.
b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000.
c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000;
factory utilities, $22,000; and factory equipment depreciation, $57,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $655,000 cash in April.
Finished (sold)
131,000
104,000
2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31).
Finished
(sold)
Job 307
$
$ 40,000
16,000
8,000
Job 307
210,000
155,000
?
Finished
(unsold)
40,000
16,000
8,000
Job 308
210,000
155,000
Finished (unsold)
$ 110,000
103,000
In process
Job 308
In process
110.000
103,000
April Total
451,000
362,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96ccea39-6e20-4e83-b9fb-b22d2ae10407%2F6056228c-8c67-4182-bf9c-570e1edbab75%2Fm0nn2ks_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
March
Direct materials
Direct labor
Overhead applied
Work in process, beginning
April
Direct materials
Direct labor
Overhead applied
Costs added in April
Total costs
Status on April 30
April 30 cost included in:
$
Job 306
26,000
24,000
12,000
Job 306
131,000
104,000
$ 26,000
24,000
12,000
Additional Information
a. Raw Materials Inventory has a March 31 balance of $87,000.
b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000.
c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000;
factory utilities, $22,000; and factory equipment depreciation, $57,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $655,000 cash in April.
Finished (sold)
131,000
104,000
2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31).
Finished
(sold)
Job 307
$
$ 40,000
16,000
8,000
Job 307
210,000
155,000
?
Finished
(unsold)
40,000
16,000
8,000
Job 308
210,000
155,000
Finished (unsold)
$ 110,000
103,000
In process
Job 308
In process
110.000
103,000
April Total
451,000
362,000
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