Question

how do i calculate?

Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $20,000; factory rent, $35,000; factory utilities, $23,000; and factory equipment depreciation, $59,000. 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 $ 30,000 22,000 11,000 $ 45,000 17,000 8,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 137,000 104,000 215,000 151,000 $100,000 105,000 Finished (sold) Finished (unsold) process 4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. Required 4A Required 4B Compute gross profit for April. Gross profit

Answer 1

4.1
Gross Profit	328000
4.2
Inventories
Raw materials	100000	=86000+520000-452000-54000
Work in Process	257500
Finished goods	512000
Total inventories	869500
Workings:
	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	30000	45000		75000
Direct Labor	22000	17000		39000
Applied overhead	11000	8500		19500
Beginning goods in process	63000	70500	0	133500
For April
Direct Materials	137000	215000	100000	452000
Direct Labor	104000	151000	105000	360000
Applied overhead	52000	75500	52500	180000
Total costs added in April	293000	441500	257500	992000
Total costs (April 30)	356000	512000	257500	1125500
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	54000
	Indirect labor	20000
	Factory rent	35000
	Factory utilities	23000
	Factory depreciation equipment	59000
	Actual factory overhead	191000
	Applied overhead	180000
	Underapplied overhead	11000
	Sales	695000
	Less: Cost of goods sold	356000
	Less: Underapplied overhead	11000
	Gross Profit	328000