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Problem - Winfrey Co.'s March 31 inventory of raw materials is $190,000. Raw materials purchases in April are $440,000, and factory payroll cost in April is $246,000. Overhead costs incurred in April are: indirect materials, $26,000; indirect labor, $14,000; factory rent, $22,000; factory utilities, $14,000; and factory equipment depreciation, $33,800. The predetermined overhead rate is 45% of direct labor cost. Job 306 is sold for $330,000 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
$17,000
$22,000
Direct labor
22,000
12,000
Applied overhead
9,900
5,400
Costs during April
95,000
170,000
$75,000
36,000
66,000
130,000
?
Status on April 30
Finished (sold)
Finished (unsold)
In process
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).
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