Marcelino Co.\'s March 31 inventory of raw materials is $85.000 Raw materials pu

Question

Marcelino Co.'s March 31 inventory of raw materials is $85.000 Raw materials purchases in April are $510,000, and factory payroll cost i $29,000, factory rent, $37,000; factory utilities. $23.000: and factory equipment depreciation, $52.000. The predetermined overhead rate is jobs worked on in April follow. n April is $391,000. Overhead costs incurred in April are: indirect materials, $60,000; indirect labor, 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three Balances on March 31 Direct materials Direct labor24, 000 Applied overhead s 32,000 39,000 16, 000 8,000 12, 000 Costs during April Direct materials Direct labor Applied overhead Status on April 30 138,000200, 000 $115,00o 105, 000 154,000 103,000 2 Finished Finished In (sold) (unsold) process KPrev5 of 5Next

Explanation / Answer

Job 306 Job 307 Job 308 Beginning Inventory 68000 63000 Add: Current cost material 138000 200000 115000 Labour 105000 154,000 103,000 OH (50% of labouor) 52,500 77000 51500 Total cost 363,500 494000 269500 Gross Profit: Sales revenue 660,000 Less: Cost of Goods sold 363,500 Gross Profit 296,500 Inventories balance: Raw material Beginning Inventory 85000 Add: Purchases 510000 Less: Direct material consumed 453,000 (138000+200000+115000) Less: Indirect material 60,000 Raw material Inventory Ending 82,000 Work in process Inventory Ending Job 308 269,500 Finished Goods Inventory Ending Job 307 494,000 Total Inventory 845,500.00

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