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 $85,000 Raw materials purchases in April are $530,000, and factory payroll cost in April is $382.000. Overhead costs incurred in April are indirect materials, 553,000; indirect labor, $27,000, factory rent, $36,000, factory utilities, $22,000, and factory equipment depreciation, $52,000. 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 100 Job 307 $28.000 24, 12,000 13,000 6,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 131,00 103,000 200,000 151,000 $110,000 101.000 Finished (sold) Finished (unsold) In process

Answer 1

4.1
Gross Profit	273000
4.2
Inventories
Raw materials	121000	=85000+530000-441000-53000
Work in Process	261500
Finished goods	489000
Total inventories	871500
Workings:
	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	28000	43000		71000
Direct Labor	24000	13000		37000
Applied overhead	12000	6500		18500
Beginning goods in process	64000	62500	0	126500
For April
Direct Materials	131000	200000	110000	441000
Direct Labor	103000	151000	101000	355000
Applied overhead	51500	75500	50500	177500
Total costs added in April	285500	426500	261500	973500
Total costs (April 30)	349500	489000	261500	1100000
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 inventory
	Actual factory overhead:
	Indirect materials	53000
	Indirect labor	27000
	Factory rent	36000
	Factory utilities	22000
	Factory depreciation equipment	52000
	Actual factory overhead	190000
	Applied overhead	177500
	Underapplied overhead	12500
	Sales	635000
	Less: Cost of goods sold	349500
	Less: Underapplied overhead	12500
	Gross Profit	273000