l Conet 18P the work you have completed so far. It does not indicate Required in
ID: 2609283 • Letter: L
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l Conet 18P the work you have completed so far. It does not indicate Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 (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 $540,000, and factory payroll cost in April is $363,000. in A $21.000 factory rent, $39.000, factory utilities, $23,000: predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 cash in April. Costs of the three jobs worked on in April follow 0 Overhead costs incurred in April are: indirect materials, $59,000, indirect labor, and factory equipment depreciation, $55,000. The Balances on March 31 Direct materials Direct labor s 25,000$ 39,800 28,880 18,800 17,000 8,580 Direct materials Direct labor Applied overhead 139,000205,e00 $12e,000 1e0,000 155,000 103,0 Eoaned Fanisned In process (sold)(unsold) Status on April 38 Finished Problem 15-1A Part 4 41 Compute gross profit for April.Explanation / Answer
Calculation of Overhead Applied :-
Job 306 :-
Applied Overhead = Direct Labor Cost * Predetermined Overhead Rate on Direct Labor Cost
= $100000*50%
= $50000
Job 307 :-
Applied Overhead = $155000*50%
= $77500
Job 308 :-
Applied Overhead = $103000*50%
= $51500
Total Overhead applied = $50000 + $77500 + $51500
= $179000
Total Overhead Incurred = $59000 + $21000 + $39000 + $23000 + $55000
= $197000
Total Cost of Job 306 :-
Cost of Goods Sold = Total Cost + Underapplied Overhead
= $344000 + ($197000 - $179000)
= $344000 + $18000
= $362000
Calculation of Gross Profit :-
= Sales Revenue - Cost of Goods Sold
= $675000 - $362000
= $313000
Gross Profit is $313000.
Particulars Amount($) Balances on March 31 Direct Materials 25000 Direct Labor 20000 Applied Overhead 10000 Costs During April Direct Materials 139000 Direct Labor 100000 Applied Overhead 50000 Total Cost 344000Related Questions
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