Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April...
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Accounting
Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $24,000; factory rent, $30,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 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
$
30,000
$
44,000
Direct labor
22,000
15,000
Applied overhead
11,000
7,500
Costs during April
Direct materials
132,000
220,000
$
115,000
Direct labor
100,000
154,000
101,000
Applied overhead
?
?
?
Status on April 30
Finished (sold)
Finished (unsold)
In process
4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet.
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