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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

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