Question

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REQ#1

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 $540,000, and factory payroll cost in April is $376,000. Overhead costs incurred in Aprilare: indirect materials, $53.000; indirect labor, $23.000 factory rent, $37000; factory utilities. $19,000: and factory equipment depreciation. $54,000. 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 306 Job 301 $ 25,000 543,000 Balances on March 31 Direct baterials Direct labor Applied overhead Costs during April Direct materials Director Applied overhead Status on April 30 131.000 210,000 151.000 $110.000 102.000 Finished Pintshed unsold) proces 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 300 job sot Jobson Apni Total from March Dret Maas Applied overhead For Apr 210 000

REQ#2

REQ#3

REQ#4

Answer 1

1
	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	25000	43000		68000
Direct Labor	24000	15000		39000
Applied overhead	12000	7500		19500
Beginning goods in process	61000	65500	0	126500
For April
Direct Materials	137000	210000	110000	457000
Direct Labor	100000	151000	102000	353000
Applied overhead	50000	75500	51000	176500
Total costs added in April	287000	436500	263000	986500
Total costs (April 30)	348000	502000	263000	1113000
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods inventory	Goods in process inventory
2
	General Journal	Debit	Credit
1	Raw materials inventory	540000
	Accounts Payable		540000
2	Work in Process inventory	457000
	Raw materials inventory		457000
3	Work in Process inventory	353000
	Cash		353000
4	Factory overhead	23000
	Cash		23000
5	Work in Process inventory	176500
	Factory overhead		176500
6	Factory overhead	53000
	Raw materials inventory		53000
7	Factory overhead	19000
	Cash		19000
8	Factory overhead	54000
	Accumulated depreciation -factory equipment		54000
9	Factory overhead	37000
	Cash		37000
10	Finished goods inventory	850000
	Work in Process inventory		850000
11	Cost of goods sold	348000
	Finished goods inventory		348000
12	Cash	675000
	Sales		675000
13	Cost of goods sold	9500
	Factory overhead		9500
3
Schedule of cost of goods manufactured
For month ended April 30
Direct materials used	457000
Direct labor used	353000
Factory overhead applied	176500
Total manufacturing costs	986500
Add: Work in Process, March 31	126500
Total cost of work in Process	1113000
Less: Work in Process, April 30	263000
Cost of goods manufactured	850000
4.1
Gross Profit	317500
4.2
Inventories
Raw materials	116000	=86000+540000-457000-53000
Work in Process	263000
Finished goods	502000
Total inventories	881000
Workings:
Actual factory overhead:
Indirect materials	53000
Indirect labor	23000
Factory rent	37000
Factory utilities	19000
Factory depreciation equipment	54000
Actual factory overhead	186000
Applied overhead	176500
Underapplied overhead	9500
Sales	675000
Less: Cost of goods sold	348000
Less: Underapplied overhead	9500
Gross Profit	317500