Marcelino Co.'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $25,000; factory rent, $36,000; factory utilities, $21,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 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

$

26,000

$

40,000

Direct labor

25,000

17,000

Applied overhead

12,500

8,500

Costs during April

Direct materials

133,000

205,000

$

115,000

Direct labor

103,000

150,000

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	$26,000		$40,000				$66,000
Direct Labor	25,000		17,000				42,000
Applied overhead	12,500		8,500				21,000
Beginning goods in process	$63,500		$65,500		$0		$129,000
For April
Direct Materials	133,000		205,000		115,000		453,000
Direct Labor	103,000		150,000		103,000		356,000
Applied overhead							0
Total costs added in April	236,000		355,000		218,000		809,000
Total costs (April 30)							$0
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in:

2.

Materials purchases (on credit).

Direct materials used in production.

Direct labor paid and assigned to Work in Process Inventory.

Indirect labor paid and assigned to Factory Overhead.

Overhead costs applied to Work in Process Inventory.

Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)

Transfer of Jobs 306 and 307 to Finished Goods Inventory.

Cost of goods sold for Job 306.

Revenue from the sale of Job 306.

Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2. Prepare journal entries for the month of April to record the above transactions.

3. . Prepare a schedule of cost of goods manufactured.

MARCELINO COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Total manufacturing costs	0
Total cost of work in process	0
Cost of goods manufactured	$0

4.1 Compute gross profit for April.

4.2 Show how to present the inventories on the April 30 balance sheet.

Inventories
Raw materials
Work in process
Finished goods
Total inventories	$0