Question

Required information (The following information applies to the questions displayed below) Marcelino Co's March 31 inventory of raw materials is $89,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $377,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor, $26,000; factory rent, $34,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 cash in April . Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 32,000 20,000 10,000 $ 36,000 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 $100,000 101,000 137,000 100,000 2 Finished (sold) 210,000 150,000 ? Finished (unsold) In process 4.1 Compute gross profit for April Gross Profit

Answer 1

Job 306 Job 307 Job 308 April Total 26 27 28 29 32,000 20,000 10,000 36,000 17,000 8,500 61,500 68,000 37,000 18,500 123,500 30 31 62.000 32 33 34 35 Beginning Work In Process (March Costs) Direct Materials Direct Labor Applied Overheads Total Beginning Work in Process Costs added in April Direct Materials Direct Labor (A) Applied Overheads (A *50%) Total costs added in April Total Costs (April 30) Status on April 30 April 30 cost included in; 137,000 100,000 50,000 287,000 349,000 finished (sold) Cost of goods sold 210,000 150,000 75,000 435,000 496,500 finished (unsold) Finished goods inventory 100,000 101,000 50,500 251,500 251,500 36 447,000 351,000 175,500 973,500 1,097,000 37 38 39 In Process Work in process inventory 40 41

42 43 44 MARCELINO COMPANY Schedule of Cost of Goods Manufactured For the month ended April 30 447,000 351,000 175,500 45 46 47 48 Direct Material used Direct Labor used Factory Overhead (351000 *50%) Total Manufacturing Costs added during the year Add Beginning Work in Process Inventory Total Cost of work in process Less Ending Work in Process Inventory Cost of Goods Manufactured 49 50 51 973,500 123,500 1,097,000 251,500 845,500 52 53 54 Calculation of Gross Profit 55 56 57 Sales (Job 306 sold for) Less Cost of Goods sold Gross Profit 665,000 349,000 316,000 58 59