Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $364,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $25,000; factory rent, $33,000; factory utilities, $21,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in April follow.

Balances on March 31
Direct materials		$	31,000			$	43,000
Direct labor			25,000				17,000
Applied overhead			12,500				8,500
Costs during April
Direct materials			130,000				205,000			$	120,000
Direct labor			103,000				153,000				102,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

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	$31,000	$43,000		$74,000
Direct Labor	25,000	17,000		42,000
Applied overhead	12,500	8,500		21,000
Beginning goods in process	$68,500	$68,500	$0	$137,000
For April
Direct Materials	130,000	205,000	120,000	455,000
Direct Labor	103,000	153,000	102,000	358,000
Applied overhead	51,500	76,500	51,000	179,000
Total costs added in April	284,500	434,500	273,000	992,000
Total costs (April 30)	$353,000	$503,000	$273,000	$1,129,000
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods inventory	Work in process inventory

a.

Materials purchases (on credit).

b.

Direct materials used in production.

c.

Direct labor paid and assigned to Work in Process Inventory.

d.

Indirect labor paid and assigned to Factory Overhead.

e.

Overhead costs applied to Work in Process Inventory.

f.

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

g.

Transfer of Jobs 306 and 307 to Finished Goods Inventory.

h.

Cost of goods sold for Job 306.

i.

Revenue from the sale of Job 306.

j.

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

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
Total cost of work in process
Cost of goods manufactured

Compute gross profit for April.

Gross Profit

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

Inventories
Raw materials
Work in process
Finished goods
Total inventories