Required informatio [The following information applies to the questions displaye

Question

Required informatio [The following information applies to the questions displayed below.] Marcelino Co's March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $51,000; indirect labor, $24,000; factory rent, $33,000; factory utilities, $22,000; and factory equipment depreciation, $60,000. 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 Balances on March 31 Direct materials Direct labor Applied overhead $ 26,000 23,000 11,500 $ 39,000 15,000 7,500 Costs during April Direct materials Direct labor Applied overhead Status on April 30 133,000 101,000 215,000 $110,000 155,000 103,000 Finished (sold) Finished sold) In process (un

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Solution 4.1:

Gross Profit = Sales - COGS = $665,000 - ($345,000 + $10,500) = $309,500

Solution 4.2:

Computation of production cost incurred in april and total cost assigned to each job Particulars Job 306 Job 307 Job 308 Total From March: Direct material $26,000.00 $39,000.00 $0.00 $65,000.00 Direct labor $23,000.00 $15,000.00 $0.00 $38,000.00 Applied overhead (50% of direct labor) $11,500.00 $7,500.00 $0.00 $19,000.00 Beginning Goods in Process $60,500.00 $61,500.00 $0.00 $122,000.00 For April: Direct material $133,000.00 $215,000.00 $110,000.00 $458,000.00 Direct labor $101,000.00 $155,000.00 $103,000.00 $359,000.00 Applied overhead (50% of direct labor) $50,500.00 $77,500.00 $51,500.00 $179,500.00 Total Cost added in April $284,500.00 $447,500.00 $264,500.00 $996,500.00 Total Costs (April 30) $345,000.00 $509,000.00 $264,500.00 $1,118,500.00 Status on April 30 Finished (Sold) Finished (Unsold) In Process April 30 cost included in Cost of goods sold Finished goods inventory Work In Process Inventory

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