Question

Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $367,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $30,000; factory rent, $37,000; factory utilities, $23,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 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

$

31,000

$

40,000

Direct labor

21,000

14,000

Applied overhead

10,500

7,000

Costs during April

Direct materials

136,000

200,000

$

120,000

Direct labor

103,000

153,000

103,000

Applied overhead

?

?

?

Status on April 30

Finished (sold)

Finished (unsold)

In process

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	$31,000		$40,000				$71,000
Direct Labor	21,000		14,000				35,000
Applied overhead	10,500		7,000				17,500
Beginning goods in process	$62,500		$61,000				$123,500
For April
Direct Materials	136,000		200,000		120,000		456,000
Direct Labor	103,000		153,000		103,000		359,000
Applied overhead							0
Total costs added in April	239,000		353,000		223,000		815,000
Total costs (April 30)							$0
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in:

Answer 1

	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	31,000	40,000		71,000
Direct Labor	21,000	14,000		35,000
Applied overhead	10,500	7,000		17,500
Beginning goods in process	62,500	61,000		1,23,500
For April
Direct Materials	1,36,000	2,00,000	1,20,000	4,56,000
Direct Labor	1,03,000	1,53,000	1,03,000	3,59,000
Applied overhead	51500	76500	51500	179500
Total costs added in April	2,39,000	3,53,000	2,23,000	8,15,000
Total costs (April 30)	3,01,500	4,14,000	2,23,000	9,38,500
Status on April 30	Finished (sold)	Finished (unsold)	In process

Applied overhead= 50% of direct labor cost