(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 $ 32,000 21,000 10,500 $ 41,000 15,000 7,500 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used overhead applied Status on April 30 138,000 102,000 ? Finished (sold) 215,000 154,000 2 Finished (unsold) $ 100,000 101,000 2 In process Additional Information a. Raw Materials Inventory has a March 31 balance of $90,000, b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are Indirect materials, $54,000; indirect labor, $25,000; factory rent, $39,000; factory utilities, $23,000; and factory equipment depreciation, $62,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $655,000 cash in April. ? Overhead applied Status on April 30 Finished (sold) ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $90,000. b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $54,000; indirect labor, $25,000; factory rent, $39,000; factory utilities, $23,000; and factory equipment depreciation, $62,000, d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $655,000 cash in April. Problem 2-2A (Algo) Part 1 Required: 1. Determine the amount of overhead applied to each job in April. $ Direct material Predetermined overhead rate Overhead applied 306 138,000 $ 0.50 10,500 $ 307 215,000 $ 0.50 7,500 308 April Total 100,000 $ 453,000 0.50 0.50 $ Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 $ 32,000 21,000 10,500 $ 41,000 15,000 7,500 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 138,000 102,000 2 Finished (sold) 215,000 154,000 2 Finished (unsold) $ 100,000 101,000 2 In process Additional Information a. Raw Materials Inventory has a March 31 balance of $90,000. b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $54,000; indirect labor, $25,000; factory rent, $39,000; factory utilities, $23,000; and factory equipment depreciation, $62,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $655,000 cash in April. Problem 2-2A (Algo) Part 2 2. Determine the total cost assigned to each job as of April 30 (Including the balances from March 31). 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 $ $ 32,000 21,000 10,500 41,000 15,000 7,500 $ 0 March Direct materials Direct labor Overhead applied Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Total costs Status on April 30 April 30 cost included in: 138,000 102,000 215,000 154,000 100,000 101,000 453,000 357,000 0 240,000 369,000 201,000 810,000 0 $ Finished (sold) Finished (unsold) In process
