In: Accounting
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Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4
[The following information applies to the questions
displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw
materials purchases in April are $600,000, and factory payroll cost
in April is $365,000. Overhead costs incurred in April are:
indirect materials, $52,000; indirect labor, $27,000; factory rent,
$31,000; factory utilities, $21,000; and factory equipment
depreciation, $51,000. 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.
Job 306 | Job 307 | Job 308 | ||||||||||
Balances on March 31 | ||||||||||||
Direct materials | $ | 29,000 | $ | 43,000 | ||||||||
Direct labor | 20,000 | 17,000 | ||||||||||
Applied overhead | 10,000 | 8,500 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 136,000 | 200,000 | $ | 110,000 | ||||||||
Direct labor | 101,000 | 150,000 | 100,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 15-1A Part 4
4.1 Compute gross profit for April.
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4.2 Show how to present the inventories on the April 30 balance sheet.
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