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ID: 2509383 • Letter: R
Question
Required information
[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $25,000; factory rent, $34,000; factory utilities, $24,000; and factory equipment depreciation, $54,000. 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.
1. Prepare a schedule of cost of goods manufactured.
Compute gross profit for April.
Explanation / Answer
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$28,000
$40,000
$68,000
Direct Labor
21,000
16,000
$37,000
Applied overhead
10,500
8,000
$18,500
Beginning goods in process
$59,500
$64,000
$0
$123,500
For April
Direct Materials
131,000
210,000
110,000
$451,000
Direct Labor
104,000
153,000
100,000
$357,000
Applied overhead
52,000
76,500
50,000
$178,500
Total costs added in April
$287,000
$439,500
$260,000
$986,500
Total costs (April 30)
$346,500
$503,500
$260,000
$1,110,000
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
Goods in process inventory
Job 306
Job 307
Job 308
April Total
From March
Direct Materials
$28,000
$40,000
$68,000
Direct Labor
21,000
16,000
$37,000
Applied overhead
10,500
8,000
$18,500
Beginning goods in process
$59,500
$64,000
$0
$123,500
For April
Direct Materials
131,000
210,000
110,000
$451,000
Direct Labor
104,000
153,000
100,000
$357,000
Applied overhead
52,000
76,500
50,000
$178,500
Total costs added in April
$287,000
$439,500
$260,000
$986,500
Total costs (April 30)
$346,500
$503,500
$260,000
$1,110,000
Status on April 30
Finished (sold)
Finished (unsold)
In process
April 30 cost included in:
Cost of goods sold
Finished goods inventory
Goods in process inventory
1 MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Direct materials used $451,000 Direct labor $357,000 Factory overhead applied $178,500 Total manufacturing costs $986,500 Add: Work in process march 31 $123,500 Total cost of work in process $1,110,000 Less: Work in process April 30 $260,000 Cost of goods manufactured $850,000 2 Sales 665000 Cost of goods sold $346,500 Gross Profit $318,500Related Questions
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