Marcelino Cos March 31 inventory of raw materials is 84000 R

Marcelino Co.\'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $367,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $23,000; factory rent, $39,000; factory utilities, $23,000, and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 cash in April. Costs of the three jobs worked on in April follow Job 306 Job 307 Job 308 Balances on March 31 s 29,000 24,000 12,000 S 37,000 Direct materials Direct labor Applied overhead 17,000 8,500 Costs during April 136,000 104,000 220,000 $115,000 102,000 Direct materials Direct labor Applied overhead Status on April 30 153,000 Finished (sold) ini shed (unsold) In proce33 3. Prepare a schedule of cost of goods manufactured Answer is complete but not entirely correct MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 471,000 Direct materials used Direct labor used Factory overhead applied Total manufacturing costs Add: Work in process March 31 127,500 Total cost of work in process Less: Work in process Apr 30,137,000 Cost of goods manufactured 359,000 100,000 930,000 1,057,500 $ (79,500)

Solution

Direct materials used 471000 Direct labor used 359000 Factory overhead applied 179500 =359000*50% Total manufacturing costs 1009500 Add: Work in Process March 31 127500 Total cost of work in process 1137000 Less: Work in Process April 30 268000 =115000+102000+(102000*50%) Cost of goods manufactured 869000