Problem 19-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $377,000. Overhead costs incurred in April are: indirect materials, $60,000; indirect labor, $21,000; factory rent, $34,000; factory utilities, $20,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $700,000 cash in April. Costs of the three jobs worked on in April following.

	Job 306				Job 307				Job 308
Balances on March 31
Direct materials		$	26,000			$	43,000
Direct labor			20,000				15,000
Applied overhead			10,000				7,500
Costs during April
Direct materials			132,000				200,000			$	105,000
Direct labor			103,000				152,000				101,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

Problem 19-1A Part 1

Required: 1. 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	$26,000		$43,000				$69,000
Direct Labor	20,000		15,000				35,000
Applied overhead	10,000		7,500				17,500
Beginning goods in process	$56,000		$65,500				$121,500
For April
Direct Materials	132,000		200,000		105,000		437,000
Direct Labor	103,000		152,000		101,000		356,000
Applied overhead							0
Total costs added in April	235,000		352,000		206,000		793,000
Total costs (April 30)							$0
Status on April 30	Finished (sold)		Finished (unsold)		In process
April 30 cost included in:

Problem 19-1A Part 2

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2. Prepare journal entries for the month of April to record the above transactions.

Problem 19-1A Part 3

3. Prepare a schedule of the cost of goods manufactured.

MARCELINO COMPANY
Schedule of Cost of Goods Manufactured
For the Month Ended April 30
Total manufacturing costs
The total cost of work in process
Cost of goods manufactured