Required information [The following information applies to the questions display

Question

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. Job 386 Job 387 Dob 388 Balances on March 31 Direct materials 31,e00 41,eee 16,000 8,000 Direct labor 21,000 18,580 Applied overhead Costs during April 138,e00 101,000 228,800$120,eee 15e,e00 105,eee Direct materials Direct labor Applied overhead Status on April 30 Finished Finished In process (sold) unsold) 3. Prepare a schedule of cost of goods manufactured search

Explanation / Answer

Computation of costs:

Direct material = 138000 + 220000 + 120000 = $478,000
Direct labor = 101000 + 150000 + 105000 $356,000
Overheads incurred = 52000 + 24000 + 34000 + 22000 + 55000 = $187,000
Beginning WIP = [(31000 + 21000 + 10500) for Job 306] + [(41000 + 16000 + 8000) for Job 307 = $127,500
Ending WIP = 120000 + 105000 + (105000*50%) = $277,500

MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Direct Material     478,000 Direct Labor     356,000 Overheads incurred     187,000 Total Manufacturing Costs 1,021,000 Add: Beginning Work-in-process     127,500 Total Cost of work in process 1,148,500 Less: Ending Work-in-process     277,500 Cost of goods manufactured 1,426,000

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