Question

mework i Help Save & Exit Su Check my Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 The following information applies to the questions displayed below. Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $386,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $29,000; factorytent, $40,000; factory utilities, $22,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 31,000 24,000 12,000 $ 38,000 15,000 7,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 132,000 102,000 215,000 154,000 $105,000 101,000 Pinished (sold) Finished (unsold) process

Answer 1

4A
Gross Profit	277500
4B
Inventories
Raw materials	167000	=87000+590000-452000-58000
Work in Process	256500
Finished goods	506500
Total inventories	930000
Workings:
	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	31000	38000		69000
Direct Labor	24000	15000		39000
Applied overhead	12000	7500		19500
Beginning goods in process	67000	60500	0	127500
For April
Direct Materials	132000	215000	105000	452000
Direct Labor	102000	154000	101000	357000
Applied overhead	51000	77000	50500	178500
Total costs added in April	285000	446000	256500	987500
Total costs (April 30)	352000	506500	256500	1115000
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
	Actual factory overhead:
	Indirect materials	58000
	Indirect labor	29000
	Factory rent	40000
	Factory utilities	22000
	Factory depreciation equipment	55000
	Actual factory overhead	204000
	Applied overhead	178500
	Underapplied overhead	25500
	Sales	655000
	Less: Cost of goods sold	352000
	Less: Underapplied overhead	25500
	Gross Profit	277500