Marcelino Co.\'s March 31 inventory of raw materials is $84,000. Raw materials p

Question

Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $367,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor $23,000; factory rent, $39,000; factory utilities, $23,000; and factory equipment depreciation, $58,000. 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 Balances on March 31 s 29,000 24,000 12,000 s 37,000 Direct materials Direct labor Applied overhead 17,000 8,500 Costs during April 136,000 104,000 220,000 $115,000 102,000 Direct materials Direct labor Applied overhead Status on April 30 153,000 Finished (sold) In Finished (unsold) proce33 4.1 Compute gross profit for April Gross Profit 4.2 Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories

Explanation / Answer

Workings:

4.1 Gross profit for April: $318000 Job 306 Sales $ 675000 Cost of goods sold 357000 Gross profit $ 318000 4.2 Inventories Raw materials 89000 Work in process 268000 Finished goods 512000 Total inventories 869000

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---