Required information Problem 151A Production costs computed

Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below., Marcelino Co.\'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow Job 306 Job 307 Job 308 Balances on March 31 $ 29,000 Direct materials Direct labor Applied overhead 20,000 10,000 35,000 18,000 9,000 Costs during April 220,000 $100,000 105,000 Direct materials Direct labor Applied overhead Status on April 30 135,000 85,000 150,000 Finished (unsold) Finished In (sold) process

Solution

3 Schedule of cost of goods manufactured Direct materials used 455000 =135000+220000+100000 Direct labor used 340000 =85000+150000+105000 Factory overhead applied 170000 =340000*50% Total manufacturing costs 965000 Add: Work in Process March 31 121000 =(29000+20000+10000)+(35000+18000+9000) Total cost of work in process 1086000 Less: Work in Process April 30 257500 =100000+105000+52500 Cost of goods manufactured 828500