Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $27,000; factory rent, $32,000; factory utilities, $20,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 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 $ 25,000 $ 40,000
Direct labor 25,000 18,000
Applied overhead 12,500 9,000
Costs during April
Direct materials 131,000 205,000 $105,000
Direct labor 105,000 152,000 101,000
Applied overhead ? ? ?
Status on April 30
Finished (sold) Finished (unsold)
In process
Problem 15-1A Part 1
Required:
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 No 306 351,000  Cost Of Goods Sold

Job No 307  500,000  Finished Goods Inventory

Job No 308 256,500  Work In Process Inventory

Explanation:

We add the March balance and the April balances for each of the jobs to get the desired results.

Marcelino Co

Job No 306

March

Direct Materials   25000

Direct Labor         25000

Applied Overhead   12500

Opening Work In Process   62500

April

Direct Materials  131000

Direct Labor       105000

Applied Overhead  (50% of 105,000)  52,500

Total Costs Added In April  288500

Total Costs   351,000

Status on April 30 Finished & Sold

Included in Cost Of Goods Sold

Job No 307

March

Direct Materials   40000

Direct Labor         18000

Applied Overhead   9000

Opening Work In Process   67,000

April

Direct Materials  205000

Direct Labor       152000

Applied Overhead  (50% of 152,000)  76,000

Total Costs Added In April 433,000

Total Costs  500,000

Status on April 30 Finished & Unsold

Included in Finished Goods Inventory

Job No 308

March

Direct Materials  

Direct Labor        

Applied Overhead  

Opening Work In Process  

April

Direct Materials  105000

Direct Labor       101000

Applied Overhead  (50% of 101,000)  50,500

Total Costs Added In April  256,500

Total Costs   256,500

Status on April 30  In Process

Included in Work In Process Inventory

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answerthat 50% of all cases go to trial;