Question

Saved Required information (The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $374,000. Overhead costs incurred in April are: indirect materials, $59,000; Indirect labor. $22,000; factory rent, $40,000; factory utilities, $24,000; and factory equipment depreciation, $52,000. 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 $ 27,000 22,000 11,000 $ 43,000 14,000 7,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 138,000 101,000 215,000 151,000 $110,000 100,000 Finished (sold) Pinished (unsold) process 4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. < Prev 4 of 4 Next >

Answer 1

		Debit	Credit
1	Raw materials inventory	540000
	Accounts Payable		540000
2	Work in Process inventory	463000
	Raw materials inventory		463000
3	Work in Process inventory	352000
	Cash		352000
4	Factory overhead	22000
	Cash		22000
5	Work in Process inventory	176000
	Factory overhead		176000
6	Factory overhead	59000
	Raw materials inventory		59000
7	Factory overhead	24000
	Cash		24000
8	Factory overhead	52000
	Accumulated depreciation -factory equipment		52000
9	Factory overhead	40000
	Cash		40000
10	Finished goods inventory	855000
	Work in Process inventory		855000
11	Cost of goods sold	349500
	Finished goods inventory		349500
12	Cash	675000
	Sales		675000
13	Cost of goods sold	21000
	Factory overhead		21000
4A
Gross Profit	304500
4B
Inventories
Raw materials	98000	=80000+540000-463000-59000
Work in Process	260000
Finished goods	505500
Total inventories	863500
Workings:
	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	27000	43000		70000
Direct Labor	22000	14000		36000
Applied overhead	11000	7000		18000
Beginning goods in process	60000	64000	0	124000
For April
Direct Materials	138000	215000	110000	463000
Direct Labor	101000	151000	100000	352000
Applied overhead	50500	75500	50000	176000
Total costs added in April	289500	441500	260000	991000
Total costs (April 30)	349500	505500	260000	1115000
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	59000
Indirect labor	22000
Factory rent	40000
Factory utilities	24000
Factory depreciation equipment	52000
Actual factory overhead	197000
Applied overhead	176000
Underapplied overhead	21000
Sales	675000
Less: Cost of goods sold	349500
Less: Underapplied overhead	21000
Gross Profit	304500