Question

! Required Information The following information applies to the questions displayed below) Marcelino Co.'s March 31 Inventory of raw materials is $82,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: Indirect materials, $54,000; Indirect labor, $24,000, factory rent, $39,000, factory utilities, $24,000, and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $685,000 cash in April. Costs of the three Jobs worked on in April follow Job 306 Job 308 $ 28,000 23,000 11,500 Job 307 $ 35,000 15,000 7,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 215,000 155,000 $105,000 101,000 136,000 105,000 ? Finished (sold) Finished (unsold) In process 4-6. 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. Required 4A Required 4B Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories S 0 4) < Required 4A

looking for total inventories

Answer 1

has Gro Profit $315,500 Calculation: Gross Profit Sales - cost of goods sold cost of Goods Sold - (finished Goode Inventory & factory Overhead) finished Goods Inventory are calculated in the table as total costs of April 30. Job 306 facto ry over head $180,500 Overhead applied to jobs. Overhead incurred Indirect materials Indirect labor factory Rent factory Utilities factory equip. depreciation Underapplied overhead cost of goods sold $ 54,000 $ 24,000 $ 39,000 $ 24,000 $ 53,000 $194,000 (13,500) Now, 356,000 + $13,500 = $369,500 Gross Profit Sales cost of Goodi sold $685,000 - $369,500 - $315,500

Mb) Inventories Raw Materials $ 114,000 Work in process $256,500 finished goods $ 505,ooo Total inventories $875,500 calculation: Raw Materials inventory Beginning raw materials inventory Purchases Direct materials ured Indirect Materials used Ending raw materials inventory $ 54,000 $570,000 $ (456,000) & (54,000) $ 114,000 Direct Materials used, work in proces, finished are calculated in the table goods

Job 306 Job 307 Job 308 April total finmold) (unsold) In Process (1) Calculation : from March Direct Materials $63,000 $ 28,000 $35,000 Direct labor $ 23,000 $15,000 $38,000 Applied overhead $ 11,500 $ 7,500 $ 19,000 Beginning work in process $ 62,500 $57,500 $0 $120,000 for April Direct Materials $136,000 $215,000 $105,000 $ 456,000 Direct labor $ 105,000 $155,000 $101,000 $361,000 $ 52,500 $77,500 $50,500 $ 180,500 Total costs added in Aprid $293,500 $447,500 $256,500 $ 997,500 Total costs (April 30) $356,000 & 505,000 $256,500 $1,117,500 finished status on April 30 April 30 cost included in cost of finished work in goods sold inventory Inventory Calculation: Applied Overhead 50% of direct labor cost Job 306: Applied overhead 50% x $105,000 Applied overhead goods Process $ 52,500 Job 307: Applied overhead 50% * $ 155,000 = $77,500 Job 308: Applied overhead 50% * $ 101,000 $ 50,500

Beginning work in prouss Direct Materials & Direct labor & Applied overhead Job 3060 Beginning work in process = ($28,000 + $23,000 + $11,500) = $ 62,500 Total costs added in opeil = Direct Materials & Direct Labor & Applied Overhead Job 366: total costs added in April $136,000+ $105,000 + $ 52,500 $293,500 Total conts (April 30) = (Beginning work in process & Total costs added in Apeid) $ 62,500 & $293,500 $350,000