Answer:
Marcelino Co.
Total production cost incurred for April and the total cost assigned to each job:
Job 306 Job 307 Job 308 Total
Total production cost
incurred for April $294,000 $437,500 $271,000 $1,002,500
Total cost assigned $356,500 $507,000 $271,000 $1,134,500
Step-by-step explanation:
a) Data and Calculations:
March 31 inventory of
raw materials = $88,000
April costs:
Raw materials purchases = $540,000
Factory payroll cost = $380,000
Overhead costs incurred = $206,000
Total costs = $1,214,000
April ending WIP inventory 271,000
Total cost incurred $943,000
Overhead costs incurred:
Indirect materials = $59,000
Indirect labor = $25,000
Factory rent = $38,000
Factory utilities = $23,000
Factory equipment depreciation = $61,000
Total factory overhead = $206,000
Predetermined overhead rate = 50% of DLC
Sales of Job 306 in April = $655,000 cash
Job 306 Job 307 Job 308 Total
Balances on March 31
Direct materials $28,000 $44,000 $72,000
Direct labor 23,000 17,000 40,000
Applied overhead 11,500 8,500 20,000
Total Beginning WIP $62,500 $69,500 $0 $132,000
Costs during April
Direct materials 138,000 205,000 $115,000 458,000
Direct labor 104,000 155,000 104,000 363,000
Applied overhead 52,000 77,500 52,000 181,500
Total production cost
incurred for April $294,000 $437,500 $271,000 $1,002,500
Total cost assigned $356,500 $507,000 $271,000 $1,134,500
Status on April 30 Finished (sold) Finished (unsold) In process
Job 306 Job 307 Job 308