Quiz #7-Chapter 19 Marcelino Co.\'s March 31 inventory of raw materials is $86,0

ID: 2548919 • Letter: Q

Question

Quiz #7-Chapter 19 Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $377000. Overhead costs incurred in April are: indirect materials, $52,000; Indirect labo $23,000; factory rent, $40,000; factory utilities, $23,000; and factory equipment depreclation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 cash in April. Costs of the three jobs worked on in April follow. Part 3 of 4 Balances on March 31 10 points Direct materials Direct labor Applied overhead 27,00037,00o 16,000 8,000 22,000 11,000 Costs during April Direct materials Direct labor Applied overhead Status on April 30 overhead03,000250:000 Finished Finished 151,000100,000 eBook (sold)(unsold) process 3. Prepare a schedule of cost of goods manufactured Print MARCELINO CC MPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured Next >

Explanation / Answer

Marcellno Company

Schedule of cost of goods manufactured

Direct materials used

$453,000

Direct labor

$354,000

Applied overhead

$177,000

Add: Beginning work in process, March 31

$122,000

Cost of work in process

$1,106,000

Less: ending work in process, April 30

$255,000

Cost of goods manufactured

$851,000

Direct materials used –

= direct materials used for Job 306, job 307 and job 308

= $138,000 + $210,000 + $105,000 = $453,000

Direct labor –

= direct labor for Job 306, job 307 and job 308

= $103,000 + $151,000 + $100,000 = $354,000

Applied overhead –

= 50% of direct labor cost

50% of $354,000 = $177,000

Work in process, beginning balance –

(Direct materials + direct labor + applied overhead) Jobs 306 and 307

= (27,000 + 22,000 + 11,000) + (37,000 + 16,000 + 9,000) = $122,000

Work in process, ending balance –

Since, only job 308 is in process, the ending work in process balance = (Direct materials + direct labor + applied overhead) of Job 308

= $105,000 + $100,000 + $50,000 = $255,000