Question

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Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $25,000; factory rent, $34,000; factory utilities, $24,000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 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		$	28,000			$	40,000
Direct labor			21,000				16,000
Applied overhead			10,500				8,000
Costs during April
Direct materials			131,000				210,000			$	110,000
Direct labor			104,000				153,000				100,000
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).

	Job 306		Job 307		Job 308		April Total
From March
Direct Materials	$28,000		$40,000				$68,000
Direct Labor	21,000		16,000				37,000
Applied overhead	10,500		8,000				18,500
Beginning goods in process
For April
Direct Materials	131,000		210,000		110,000		451,000
Direct Labor	104,000		153,000		100,000		357,000
Applied overhead
Total costs added in April
Total costs (April 30)
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in:

these are the options for the last line:

Cost of goods sold

Finished goods inventory

Raw materials inventory

Work in process inventory

Answer 1

	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	$28,000	$40,000		$68,000
Direct Labor	21,000	16,000		$37,000
Applied overhead	10,500	8,000		$18,500
Beginning goods in process	$59,500	$64,000	$0	$123,500
For April
Direct Materials	131,000	210,000	110,000	$451,000
Direct Labor	104,000	153,000	100,000	$357,000
Applied overhead	52,000	76,500	50,000	$178,500
Total costs added in April	$287,000	$439,500	$260,000	$986,500
Total costs (April 30)	$346,500	$503,500	$260,000	$1,110,000
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