Question

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 $560,000, and factory payroll cost in April is $385.000 Overhead costs incurred in Aprilare: indirect materials, $58,000; indirect labor, $29,000; factory rent, $30,000; factory utilities, $22,000; and factory equipment depreciation, $54,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 cash in April. Costs of the three jobs worked on in April follow Job 306 Job 307 Job 308 $ 27.000 21.000 10,500 42.000 17.000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 137,000 102,000 200,000 154.000 $105,000 100.000 Finished (sold) Finished (unsold) process Problem 15-1A Part 4 4.1 Compute gross profit for April. 4.2 Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories

Answer 1

3)		Schedule of goods of goods manufactured
		direct materials used					442,000
		Direct labor used					356,000
		factory overhead applied					178,000
		total manufacturing costs					976,000
		Add:work in process March 31					126,000
		total cost of work in process					1,102,000
		less:work in process April 30					255,000
		cost of goods manufactured					847,000
4)		Gross profit
		sales				630,000
		less cost of goods sold				363,500
		Gross profit				266,500
5)		inventories
		Raw materials				145,000
		work in process				255,000
		finished goods				498,500
		total inventories				898,500
	Working notes
		Actual overhead
		indirect material			58,000
		indirect labor			29,000
		depreciation			54,000
		Factory rent			30,000
		factory utilities			22,000
		total			193,000
		overhead applied			178,000
		under applied overhead			15,000
		Raw materials inventory
		beginning raw materials			85,000
		purchased			560,000
		direct materials used			-442,000
		indirect materials used			-58,000
		ending raw materials inventory			145,000