Question

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 29,000 20,000 10,000 $ 35,000 18,000 9,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 135,000 85,000 220,000 150,000 $100,000 105,000 Finished (sold) Finished (unsold) In process Complete this question by entering your answers in the tabs below. Requirement General Journal General Ledger Trial Balance Job Costs Cost of Goods Mfg Gross Profit Select the accounts used in the calculation of gross profit. Enter the amount of gross profit for Marcelino Company for the month of April. Dates: Mar 31 to: Apr 30 - Gross profit < Cost of Goods Mfg Gross Profit >

Answer 1

Calculation of Gross Profit : Gross Profit = Sale Value of Job - Cost of Job In the given case, Job 306 is sold at $635,000 and there are no sale of any other jobs except Job 306. So, total sale value = $635,000 59,000.00 Calculation of Cost of Job 306: Beginning Balances ($29000+$20000+$10000) Add: Costs incurred during April Direct Materials Direct Labor Applied Overhead ($85000 x 50%) Total Cost added in April 135000 85000 42500 262500 Total Job Cost for Job 306 ($59000+$262500) 321,500.00 Calculation of Gross Profit for the month of April: Total Sales of Job 306 Less: Cost of Job 306 Gross Profit 635,000.00 (321,500.00) 313,500.00