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Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $38,000; factory utilities, $24,000; and factory equipment depreciation, $58,000. 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.

rev: 03_15_2018_QC_CS-121813

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 Balances on March 31 Direct materials $ 32,000 $ 38,000 Direct labor 25,000 18,000 Applied overhead 12,500 9,000 Costs during April Direct materials 139,000 200,000 $ 115,000 Direct labor 102,000 154,000 101,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Required information Job 306 Job 307 Job 308 April Total From March Direct Materials Direct Labor Applied overhead 32,000 25,000 12,500 69,500 38,000 18,000 9,000 65,000 $ 70,000 43,000 21,500 $ 134,500 Beginning goods in process For April 200,000 154,000 Direct Materials 454,000 139,000 102,000 115,000 Direct Labor 101,000 357,000 Applied overhead Total costs added in April Total costs (April 30) Status on April 30 April 30 cost included in 241,000 354,000 216,000 811,000 Finished (sold) Cost of goods sold Finished (unsold) In process inished goods inventory ork in process inventory

Explanation / Answer

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 Total From march direct materials 32000 38000 70000 Direct labour 25000 18000 43000 Applied overhead 12500 9000 21500 Total beginning work in process 69500 65000 134500 For april Direct material 139000 200000 115000 454000 Direct labour 102000 154000 101000 357000 Applied overhead 51000 77000 50500 178500 Total cost added in april 292000 431000 266500 989500 Total cost (april 30) 361500 496000 266500 1124000 Status Finished (sold) Finished (unsold) In process April 30 cost included in Cost of goods sold Finished goods inventory Work in process inventory

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