Question
Marcelino Co.'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $360,000.
Marcelino Co.'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $360,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $20,000; factory rent, $33,000; factory utilities, $22,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $670,000 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 | $ | 37,000 | ||||||||
Direct labor | 22,000 | 14,000 | ||||||||||
Applied overhead | 11,000 | 7,000 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 133,000 | 200,000 | $ | 105,000 | ||||||||
Direct labor | 101,000 | 153,000 | 102,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process |
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