Question

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 $80,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $23,000; factory rent, $36,000; factory utilities, $21,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $685,000 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			$	41,000
Direct labor			21,000				13,000
Applied overhead			10,500				6,500
Costs during April
Direct materials			132,000				205,000			$	100,000
Direct labor			104,000				152,000				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).

Answer 1

solution

marcelino co.s

part 1

determine the total of each production cost incurred for april

from march job 306 job 307 job 308   total

direct materials 29000 41000 70000

direct labor 21000 13000 34000

applied overhead 10500 6500 17000

goods in process beginning 60500 60500 0 121000

for april

direct materials 132000 205000 100000 437000

direct labor 104000 152000 100000 356000

applied overhead (50% of dLc) 52000 76000 50000 178000

total costs added in april 288000 433000 250000 971000

total costs (april 30) 348500 493500 250000 1092000

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 inventory