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Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $391,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.

3. Prepare a schedule of cost of goods manufactured.

Actual factory overhead

Depreciation of equipment

Direct labor used

Direct materials used

Factory overhead applied

Factory rent

Factory utilities

Indirect labor

Indirect materials

Actual factory overhead

Depreciation of equipment

Direct labor used

Direct materials used

Factory overhead applied

Factory rent

Factory utilities

Indirect labor

Indirect materials

Actual factory overhead

Depreciation of equipment

Direct labor used

Direct materials used

Factory overhead applied

Factory rent

Factory utilities

Indirect labor

Indirect materials

Add: Work in process April 30

Add: Work in process March 31

Add: Overapplied overhead

Less: Work in process April 30

Less: Work in process March 31

Less: Underapplied overhead

Add: Work in process April 30

Add: Work in process March 31

Add: Overapplied overhead

Less: Work in process April 30

Less: Work in process March 31

Less: Underapplied overhead

4.1 Compute gross profit for April.

Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 31,000 $ 36,000 Direct labor 23,000 15,000 Applied overhead 11,500 7,500 Costs during April Direct materials 130,000 210,000 $ 105,000 Direct labor 103,000 155,000 104,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process

Explanation / Answer

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$ Direct Material Used 130000+210000+105000 445000 Direct Labor used 103000+155000+104000 362000 Factory overhread applied 50% of 362000 181000 Total Manufacturing Cost 988000 Add: Work in process March 31 (Job 306+Job 307) (31000+23000+11500)+(36000+15000+7500) 124000 Total Cost of work in process 1112000 Less: Work in process April 30 (Job 308) 105000+104000+(104000*50%) 261000 Cost of Goods Manufactured 851000 Gross Profit: Sales 635000 Cost of Goods Sold: Opening: 31000+23000+11500= 65500 Cost added in April: 130000+103000+51500 284500 350000 Gross Margin 635000-350000 285000

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