Question

Required information (The following information applies to the questions displayed below. Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $27,000; factory rent, $39,000; factory utilities, $24,000; and factory equipment depreciation, $52,000. 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 307 Job 308 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead $ 31,000 22,000 11,000 $ 40,000 19,000 9,500 135,000 101,000 220,000 152,000 $110,000 102,000 ? In process Status on April 30 Finished (sold) Finished (unsold)

Labels

• Actual factory overhead
• Depreciation of equipment
• Direct labor used
• Direct materials used
• Factory overhead applied
• Factory rent
• Factory utilities
• Indirect labor
• Indirect materials

Answer 1

	Job 306	Job 307	Job 308	Total
From March
Direct Materials	31,000	40,000		71,000
Direct Labor	22,000	19,000		41,000
Applied Overhead	11,000	9,500		20,500
Beginning goods in process	64,000	68,500		132,500
For April
Direct Materials	135,000	220,000	110,000	465,000
Direct Labor	101,000	152,000	102,000	355,000
Applied Overhead (Direct labor cost x 50%)	50,500	76,000	51,000	177,500
Total costs added in April	286,500	448,000	263,000	997,500
Total costs (April 30)	350,500	516,500	263,000	1,130,000
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in	Cost of goods sold	Finished goods inventory	Work in process
MARCELINO COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Direct materials used	465,000
Direct labor used	355,000
Factory overhead used	177,500
Total manufacturing costs	997,500
Add: Work in process March 31	132,500
Total cost of work in process	1,130,000
Less: Work in process April 30	263,000
Cost of goods manufactured	867,000