Question

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

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Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $24,000; factory rent, $31,000; factory utilities, $21,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $700,000 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			$	37,000
Direct labor			24,000				18,000
Applied overhead			12,000				9,000
Costs during April
Direct materials			136,000				220,000			$	120,000
Direct labor			104,000				153,000				104,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

Problem 15-1A Part 3

3. Prepare a schedule of cost of goods manufactured.

Answer 1

Ans: Cost Of goods Manufactured.

Particulars	Amount($)
Direct Materials Used	476,000
Direct labor Used	361,000
Factory Overhead Applied[50%of direct labor]	180,500
Total Manufacturing Costs	1,017,500
Add: Work in Process , March 31**	129,000
Total Cost of work In Process	1,146,500
Less: Work In process April 30[120,000+104,000+52,000]	276,000
Cost of Goods Manufactured	870,500

Work In process March 31=29,000+37,000+24,000+18,000+12,000+9,000

=> 129,000