Question
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $366,000.
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $366,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $21,000; factory rent, $36,000; factory utilities, $21,000; 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 | ||||||||||||||||||||||||||||||||||||||
Direct materials | $ | 250,000 | $ | 36,000 | ||||||||||||||||||||||||||||||||||
Direct labor | 22,000 | 14,000 | ||||||||||||||||||||||||||||||||||||
Applied overhead | 11,000 | 7,000 | ||||||||||||||||||||||||||||||||||||
Costs during April | ||||||||||||||||||||||||||||||||||||||
Direct materials | 131,000 | 205,000 | $ | 100,000 | ||||||||||||||||||||||||||||||||||
Direct labor | 103,000 | 152,000 | 104,000 | |||||||||||||||||||||||||||||||||||
Applied overhead | ? | ? | ? | |||||||||||||||||||||||||||||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||||||||||||||||||||||||||||
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