Question

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 $87,000. Raw materials purchases in April are $550,000, and factory payroll cost in April is $384,000. Overhead costs incurred in April are: indirect materials, $55.000, indirect labor. $27.000 factory rent, $37,000; factory utilities, $23,000, and factory equipment depreciation, $55,000. The 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 Job 306 Job 307 Job 308 $ 29,000 22,000 11,000 $ 40,000 15,000 7.500 Balanced on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 205,000 153,000 $115,000 103,000 133,000 101,000 ? Finished (sold) Finished (unsold) process Problem 15-1A Part 4 4.1 Compute gross profit for April. Gross Profit

Answer 1

Answer

page-1 Job 306 bJob 307 Job 308 $ 29,000 Balances on March 31 - Direct materials - Direct Labour - Applied overhead $ 40,000 15,000 22,00 12,000 7, 500 2,05,000 $ 1,15,000 1,33,000 1,01,000 1153,000 1,03,000 Casts during April - Direct materials - Direct Labour - Applied overhead [soy of direct, Labour] 76, 500 51,500 50, 500 3,46,500 4.97,000 2,69,500

page-2 6.75,000 Grosspropt :- Job -306 sold (-) Direct materials - opening 29,000 * Custom ima 1,33,000 1,62,000 (-) Direct Labour - opening 22,000 -> cost during & 1.01,000 April 1, 23,000 Gross profit 3,90,000 1. 1 o Gross profit. 3.90,000 - Xin 6,75,000 - 57.77% . In Gross profit calculation and actor overhead expense has not taken. Overhed expense will deduct for calculation of met profit.

pagenon page 3 the inventories on 30 April 2 Present Raw material opening > 87,000 add purchase 5,50,000 6,37,000 (-) Material use during the rear - Job 306 (1,33,000) - Job 307 (2,05,ooo) - Job 308 (1115,000) Closing Raw material 1, 84,000 work in progen Direct material process! Job 308 1,15,00 1,03,000 51,500 Direct Labour Applied overhead 2,69,500

D eze page.ny Finished goods Job 307 Balances on March 31 - mache direct material - Direct Labour 40,000 & 40,000 roo 15,000 - Applied overhead 7500 cost during April - Direct maturithi 2,05,000 - Direct Labour 1,53,000 6 - Applied overhead [ sustdirect Labour] 76,500 50% X 1.53,000 4, 97,000 Inventories on the April 30 balance sheet Raw materia) - 1,84,00 . work in process - 2,69,500 Fininshed goods - 4,97,000 500 Total inventories
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