Required information Problem 19-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 Skip to question [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 $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 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 $ 32,000 $ 37,000 Direct labor 25,000 16,000 Applied overhead 12,500 8,000 Costs during April Direct materials 138,000 215,000 $ 105,000 Direct labor 104,000 151,000 102,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information

Problem 19-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4

Skip to question

[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 $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $23,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 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		$	32,000		$	37,000
Direct labor			25,000			16,000
Applied overhead			12,500			8,000
Costs during April
Direct materials			138,000			215,000	$	105,000
Direct labor			104,000			151,000		102,000
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 balance sheet.
Complete this question by entering your answers in the tabs below.
Required 4A
Required 4B
Show how to present the inventories on the April 30 balance sheet.
Inventories
Raw materials
Work in process
Finished goods
Total inventories
$

Problem 19-1A Part 4
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
< Required 4A
Required 4B >

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