[The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April.

	Job 306	Job 307	Job 308
Balances on March 31
Direct materials used (in March)	$ 26,000	$ 42,000
Direct labor used (in March)	22,000	19,000
Overhead applied (March)	11,000	9,500
Costs during April
Direct materials used	136,000	210,000	$ 120,000
Direct labor used	105,000	151,000	101,000
Overhead applied	?	?	?
Status on April 30	Finished (sold)	Finished (unsold)	In process

Additional Information

1. Raw Materials Inventory has a March 31 balance of $84,000.
2. Raw materials purchases in April are $530,000, and total factory payroll cost in April is $386,000.
3. Actual overhead costs incurred in April are indirect materials, $50,000; indirect labor, $29,000; factory rent, $40,000; factory utilities, $21,000; and factory equipment depreciation, $61,000.
4. Predetermined overhead rate is 50% of direct labor cost.
5. Job 306 is sold for $665,000 cash in April.

Problem 2-2A (Algo) Part 1

Required: 1. Determine the amount of overhead applied to each job in April.

	306	307	308	April Total
				$0
Predetermined overhead rate	0.50	0.50	0.50	0.50
Overhead applied

2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31).

	Job 306		Job 307		Job 308		April Total
March
Direct materials	$26,000		$42,000
Direct labor	22,000		19,000
Overhead applied	11,000		9,500
Work in process, beginning							$0
April
Direct materials	136,000		210,000		120,000		466,000
Direct labor	105,000		151,000		101,000		357,000
Overhead applied							0
Costs added in April	241,000		361,000		221,000		823,000
Total costs							$0
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in:

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

4. Prepare a schedule of cost of goods manufactured for the month end April 30.

MARCO 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