Problem 2-1A Production costs computed and recorded; reportsprepared LO C2, P1, P2, P3, P4
[The following information applies to the questionsdisplayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $86,000. Rawmaterials purchases in April are $500,000, and factory payroll costin April is $384,000. Overhead costs incurred in April are:indirect materials, $54,000; indirect labor, $23,000; factory rent,$38,000; factory utilities, $23,000; and factory equipmentdepreciation, $61,000. The predetermined overhead rate is 50% ofdirect labor cost. Job 306 is sold for $645,000 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 | | $ | 31,000 | | | $ | 35,000 | | | | | |
| Direct labor | | | 23,000 | | | | 13,000 | | | | | |
| Applied overhead | | | 11,500 | | | | 6,500 | | | | | |
| Costs during April | | | | | | | | | | | | |
| Direct materials | | | 130,000 | | | | 215,000 | | | $ | 105,000 | |
| Direct labor | | | 105,000 | | | | 151,000 | | | | 105,000 | |
| Applied overhead | | | ? | | | | ? | | | | ? | |
| Status on April 30 | Finished (sold) | Finished (unsold) | | In process |
|
Required:
1. Determine the total of each production costincurred for April (direct labor, direct materials, and appliedoverhead), and the total cost assigned to each job (including thebalances from March 31).
