[The following information applies to the questions displayed below.] Marcelino

Question

[The following information applies to the questions displayed below.]

Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $361,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $27,000; factory rent, $36,000; factory utilities, $22,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.

7.

value:
0.78 points

Required information

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).

Materials purchases (on credit).

Direct materials used in production.

Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)

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.

Prepare a schedule of cost of goods manufactured.

Compute gross profit for April

Show how to present the inventories on the April 30 balance sheet.

Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $361,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $27,000; factory rent, $36,000; factory utilities, $22,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.

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