Quiz #7- Chapter 19 4 Required Information The following information applies to

Question

Quiz #7- Chapter 19 4 Required Information The following information applies to the questions displayed below Part 4 of4 Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $377,000. Overhead costs incurred in April are: indirect materials, $52,000: Indirect labor, $23,000; factory rent, $40,000; factory utilities, $23,000; and factory equipment depreciation, $57,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 cash in April. Costs of the three jobs worked on in April follow. 10 polnts Job 306Job 307 Job 308 Balances on Harch 31 Direct materials Direct labor Applied overhead s 27,00037,000 16,000 8,000 22,000 11,000 138,000 210,000 $105,000 03,000151,000 100,000 Costs during April Direct materials Direct labor Applied overhead Status on April 30 Pinished Finished In sold)(unsold) process 1 Compute gross profit for April. Gross Proft of 4 Next

Explanation / Answer

Adjusted Cost of goods sold: Cost of Job 306 352500 Add: Under-applied Overheads 18,000 Adjusted Cost of goods sold: 370500 GROSS PROFIT: Sales revenue 645,000 Less: Adjusted cost of goods sold 370,500 Gross Profit 274,500

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