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Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 $ 31,000 21,000 10,500 140,000 103,000 Job 307 $ 44,000 17,000 8,500 Job 308 215,000 $ 115,000 154,000 104,000 ? Finished Finished (sold) (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $83,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $384,000. c. Actual overhead costs incurred in April are indirect materials, $60,000; indirect labor, $23,000; factory rent, $40,000; factory utilities, $23,000; and factory equipment depreciation, $63,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $685,000 cash in April. a. Compute gross profit for April. . Show how the three inventory accounts are reported on the April 30 balance sheet.

Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 $ 31,000 21,000 10,500 140,000 103,000 Job 307 $ 44,000 17,000 8,500 Job 308 215,000 $ 115,000 154,000 104,000 ? Finished Finished (sold) (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $83,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $384,000. c. Actual overhead costs incurred in April are indirect materials, $60,000; indirect labor, $23,000; factory rent, $40,000; factory utilities, $23,000; and factory equipment depreciation, $63,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $685,000 cash in April. a. Compute gross profit for April. . Show how the three inventory accounts are reported on the April 30 balance sheet.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 $ 31,000 21,000 10,500 140,000 103,000 Finished (sold) $ 44,000 17,000 8,500 Job 308 215,000 $ 115,000 154,000 104,000 ? In process ? Finished (unsold) Additional Information a. Raw Materials Inventory has a March 31 balance of $83,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $384,000. c. Actual overhead costs incurred in April are indirect materials, $60,000; indirect labor, $23,000; factory rent, $40,000; factory utilities, $23,000; and factory equipment depreciation, $63,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $685,000 cash in April. 5-a. Compute gross profit for April. 5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.
Transcribed Image Text:Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 $ 31,000 21,000 10,500 140,000 103,000 Finished (sold) $ 44,000 17,000 8,500 Job 308 215,000 $ 115,000 154,000 104,000 ? In process ? Finished (unsold) Additional Information a. Raw Materials Inventory has a March 31 balance of $83,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $384,000. c. Actual overhead costs incurred in April are indirect materials, $60,000; indirect labor, $23,000; factory rent, $40,000; factory utilities, $23,000; and factory equipment depreciation, $63,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $685,000 cash in April. 5-a. Compute gross profit for April. 5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.
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