Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet. Compute Gross profit Inventories Raw materials Work in process Finished goods Total inventories $0
Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $530,000, and
Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $22,000; factory rent, $35,000; factory utilities, $21,000; and factory equipment depreciation, $59,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 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 | $ | 28,000 | $ | 39,000 | ||||||||
| Direct labor | 22,000 | 19,000 | ||||||||||
| Applied overhead | 11,000 | 9,500 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 132,000 | 210,000 | $ | 115,000 | ||||||||
| Direct labor | 104,000 | 154,000 | 103,000 | |||||||||
| 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
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