Question

Required Information Problem 02-1A 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 $88.000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $376,000. Overhead costs incurred in April are Indirect materials, $60,000: Indirect labor. $22.000.factory rent. $39.000; factory utilities. $23.000, and factory equipment depreciation, $61.000. The 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 386 Job 307 Job 30s $ 26,eee 23,000 11,500 $ 39,000 16,00 8,000 Balances on March 31 Direct materials Direct labor Applied overhead costs during April Direct materials Direct labor Applied overhead Status on April 30 139,000 182.ee 200,000 151,000 s1e5,000 101,00 Finished (sold) Finished (unsold) In process Problem 02-1A Part 4 4-a. Compute gross profit for April 4-6. Show how to present the inventories on the April 30 balance sheet Complete this question by entering your answers in the tabs below. Required 4 Required 48 Show how to present the inventories on the April 30 balance sheet. Raw materials F ood Toivones (Required A

Answer 1

Answer

• Working

	Job 306	Job 307	Job 308	Total
Beginning balance:
Material	$26,000	$39,000		$65,000
Labor	$23,000	$16,000		$39,000
Overhead	$11,500	$8,000		$19,500
Beginning WIP Inventory	$60,500	$63,000	$0	$123,500
Direct Material cost	$139,000	$200,000	$105,000	$444,000
Direct Labor	$102,000	$151,000	$101,000	$354,000
Applied Overhead cost (50% of direct labor)	$51,000	$75,500	$50,500	$177,000
Total cost	$352,500	$489,500	$256,500	$1,098,500
Status	SOLD	FINISHED GOODS	WIP INVENTORY

• Requirement 4 B asked

	Ending balance
Raw material	$184,000
Work in Process Inventory	$198,000
Finished Goods	$489,500
TOTAL	$ 871,500

--Working

	Beginning	Addition	Deduction
Raw material	88000	540000	444000
Work in Process Inventory	=26000+39000	=444000+354000+177000	=352500+489500
Finished Goods	0	=489500+352500	352500