Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) $ 29,000 Direct labor used (in March) 20,000 Overhead applied (March) 10,000 $ 35,000 18,000 9,000 Costs during April Direct materials used 135,000 220,000 $ 100,000 Direct labor used Overhead applied Status on April 30 85,000 ? Finished (sold) 150,000 105,000 ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $80,000. b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $363,000. c. Actual overhead costs incurred in April are indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $635,000 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. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Compute gross profit for April.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
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Problem 9SPA: JOB ORDER COSTING TRANSACTIONS Stonestreet Enterprises makes garage doors. During the month of...
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Marco Company shows the following costs for three jobs worked on in April.
Job 306
Job 307
Job 308
Balances on March 31
Direct materials used (in March)
$ 29,000
Direct labor used (in March)
20,000
Overhead applied (March)
10,000
$ 35,000
18,000
9,000
Costs during April
Direct materials used
135,000
220,000 $ 100,000
Direct labor used
Overhead applied
Status on April 30
85,000
?
Finished
(sold)
150,000
105,000
?
Finished
(unsold)
In process
Additional Information
a. Raw Materials Inventory has a March 31 balance of $80,000.
b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $363,000.
c. Actual overhead costs incurred in April are indirect materials, $50,000; indirect labor, $23,000; factory rent,
$32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $635,000 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.
Complete this question by entering your answers in the tabs below.
Req 5A
Req 5B
Compute gross profit for April.
Transcribed Image Text:Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) $ 29,000 Direct labor used (in March) 20,000 Overhead applied (March) 10,000 $ 35,000 18,000 9,000 Costs during April Direct materials used 135,000 220,000 $ 100,000 Direct labor used Overhead applied Status on April 30 85,000 ? Finished (sold) 150,000 105,000 ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $80,000. b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $363,000. c. Actual overhead costs incurred in April are indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $635,000 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. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Compute gross profit for April.
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