Question

Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $376,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor, $21,000; factory rent, $39,000; factory utilities, $19,000; and factory equipment depreciation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $690,000 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	$26,000	$37,000
Direct labor	24,000	18,000
Applied overhead	12,000	9,000
Costs during April
Direct materials	131,000	205,000	$110,000
Direct labor	102,000	152,000	101,000
Applied overhead	?	?	?
Status on April 30	Finished (sold)	Finished (unsold)	In process

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).

Answer 1