Reference no: EM131829610
Problem - Winfrey Co.'s March 31 inventory of raw materials is $ 150,0000. Raw materials purchases in April are $ 400,000, and factory payroll cost in April $220,000. Overhead costs incurred in April are: indirect materials, $30,000; indirect labor, $14,000; factory rent, $20,000; factory utilities, $ 12,000; and factory equipment depreciation, $30,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $380,000 cash in April. Costs of the three jobs worked on in April follow.
Balances on March 31:
Direct Materials: Job 306 = $14,000 Job 307 = $18,000
Direct Labor: Job 306= 18,000 Job 307 = 16,000
Applied Overhead: Job 306 = 9,000 Job 307 = 8,000
Costs during April:
Direct materials: Job 306 = 100,000 Job 307 = 170,000 Job 308 = 80,000
Direct Labor: Job 306 = 30,000 Job 307 = 56,000 Job 308 = 120,000
Applies Overhead: Job 306, 307, & 308 = =???
Status on April 30: Job 306 = Finished(sold) Job 307 = Finished (unsold) Job 308 = 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 balances from March 31).
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