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ID: 2509446 • Letter: R
Question
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Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $25,000; factory rent, $34,000; factory utilities, $24,000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 cash in April. Costs of the three jobs worked on in April follow.
4.1 Compute gross profit for April.
4.2 Show how to present the inventories on the April 30 balance sheet.
Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 28,000 $ 40,000 Direct labor 21,000 16,000 Applied overhead 10,500 8,000 Costs during April Direct materials 131,000 210,000 $ 110,000 Direct labor 104,000 153,000 100,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In processExplanation / Answer
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$28,000
$40,000
$68,000
Direct Labor
21,000
16,000
$37,000
Applied overhead
10,500
8,000
$18,500
Beginning goods in process
$59,500
$64,000
$0
$123,500
For April
Direct Materials
131,000
210,000
110,000
$451,000
Direct Labor
104,000
153,000
100,000
$357,000
Applied overhead
52,000
76,500
50,000
$178,500
Total costs added in April
$287,000
$439,500
$260,000
$986,500
Total costs (April 30)
$346,500
$503,500
$260,000
$1,110,000
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
4.1
Sales
Gross Profit
4.2
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$28,000
$40,000
$68,000
Direct Labor
21,000
16,000
$37,000
Applied overhead
10,500
8,000
$18,500
Beginning goods in process
$59,500
$64,000
$0
$123,500
For April
Direct Materials
131,000
210,000
110,000
$451,000
Direct Labor
104,000
153,000
100,000
$357,000
Applied overhead
52,000
76,500
50,000
$178,500
Total costs added in April
$287,000
$439,500
$260,000
$986,500
Total costs (April 30)
$346,500
$503,500
$260,000
$1,110,000
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
Goods in process inventory4.1
Sales
665000 Cost of goods sold $346,500Gross Profit
$318,5004.2
Inventories Raw materials 214000 =85000+580000-451000 Work in process $260,000 Finished goods $503,500 Total inventories 977500Related Questions
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