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Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4

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Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $27,000; factory rent, $31,000; factory utilities, $21,000; and factory equipment depreciation, $51,000. 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.

	Job 306				Job 307				Job 308
Balances on March 31
Direct materials		$	29,000			$	43,000
Direct labor			20,000				17,000
Applied overhead			10,000				8,500
Costs during April
Direct materials			136,000				200,000			$	110,000
Direct labor			101,000				150,000				100,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

Problem 15-1A Part 1

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 306		Job 307		Job 308		April Total
From March
Direct Materials	$29,000		$43,000				$72,000
Direct Labor	20,000		17,000				37,000
Applied overhead	10,000		8,500				18,500
Beginning goods in process							$0
For April
Direct Materials	136,000		200,000		110,000		446,000
Direct Labor	101,000		150,000		100,000		351,000
Applied overhead							0
Total costs added in April	237,000		350,000		210,000		797,000
Total costs (April 30)							$0
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in:

Answer 1

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