omework sol A v Required information The following information applies to the qu

Question

omework sol A v Required information The following information applies to the questions displayed below. 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 $380,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $24,000; factory rent, $34,000; factory utilities, $22,000; and factory equipment depreciation, $55,000. 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. Balances on March 31 $ 41,eee 16,e00 8,000 s 31,eee Direct materials Direct labor Applied overhead 21,ee0 18,5ee Costs during April 138,e00 228, ee9 $12e,e8e 101,eee Direct materials Direct labor Applied overhead Status on April 3e 158,eee 105, ee Fini shedFinished T a In process (sold) (unsold) 80f8 Next Prey re to search

Explanation / Answer

Job 306 Job 307 Job 308 Beginning Cost of WIP 62500 65000 Cost incurred in April: Material 138000 220000 120000 Labour 101000 150000 105000 Overheads applied (50% of DLC) 50500 75000 52500 Total cost 352000 510000 277500 Status FG SOLD FG Unsold WIP Raw material Inventory: Beginning Inventory 86000 Add:; Purchases made during April 530000 Total cost of raw material held 616000 Less: Issued to jobs as direct material 478000 (138000+220000+120000) Less: Issue to Jobs as indirect material 52000 Ending inventory 86000 Req 4.1 Sales revenue of Job 306 675000 Less: COGS 352000 Gross Profit 323000 Req 4.2 Inventories Amount Raw material 323000 WIP 277500 Finished Goods 510000 Total Inventories 1110500

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