Required information Problem 19-2A (Algo) Computing and recording job costs; preparing schedule of cost of goo manufactured LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] 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) $ 32,200 $ 38,200 Direct labor used (in March) Overhead applied (March) 23,200 13,200 21,200 12,200 Costs during April Direct labor used Direct materials used 143,000 Overhead applied Status on April 30. 88,200 ? Finished. (sold) 228,000 $ 108,000 158,000 2 Finished (unsold) 113,000 2 In process Additional Information a. Raw Materials Inventory has a March 31 balance of $83,200. b. Raw materials purchases in April are $508,000, and total factory payroll cost in April is $371,000. c. Actual overhead costs incurred in April are indirect materials, $52,000; indirect labor, $25,000; factory $34,000; factory utilities, $21,000; and factory equipment depreciation, $53,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $643,000 cash in April. Problem 19-2A (Algo) Part 5 5-a. Compute gross profit for April. 5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.
Required information Problem 19-2A (Algo) Computing and recording job costs; preparing schedule of cost of goo manufactured LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] 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) $ 32,200 $ 38,200 Direct labor used (in March) Overhead applied (March) 23,200 13,200 21,200 12,200 Costs during April Direct labor used Direct materials used 143,000 Overhead applied Status on April 30. 88,200 ? Finished. (sold) 228,000 $ 108,000 158,000 2 Finished (unsold) 113,000 2 In process Additional Information a. Raw Materials Inventory has a March 31 balance of $83,200. b. Raw materials purchases in April are $508,000, and total factory payroll cost in April is $371,000. c. Actual overhead costs incurred in April are indirect materials, $52,000; indirect labor, $25,000; factory $34,000; factory utilities, $21,000; and factory equipment depreciation, $53,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $643,000 cash in April. Problem 19-2A (Algo) Part 5 5-a. Compute gross profit for April. 5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Required information
Problem 19-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods
manufactured LO P1, P2, P3, P4
[The following information applies to the questions displayed below.]
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)
Direct labor used (in March)
$ 32,200
Overhead applied (March)
23,200
13,200
$ 38,200
21,200
12,200
Costs during April
Direct materials used
143,000
Direct labor used.
Overhead applied
Status on April 30
88,200
?
Finished
(sold)
228,000 $ 108,000
158,000
?
Finished
(unsold)
113,000
?
In process
Additional Information
a. Raw Materials Inventory has a March 31 balance of $83,200.
b. Raw materials purchases in April are $508,000, and total factory payroll cost in April is $371,000.
c. Actual overhead costs incurred in April are indirect materials, $52,000; indirect labor, $25,000; factory rent,
$34,000; factory utilities, $21,000; and factory equipment depreciation, $53,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $643,000 cash in April.
Problem 19-2A (Algo) Part 5
5-a. Compute gross profit for April.
5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99a05b6b-6258-45e5-8536-0bdade11ab66%2Fa4f830f1-5a9d-499b-a536-f898cc512eb7%2Fr8hfp8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 19-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods
manufactured LO P1, P2, P3, P4
[The following information applies to the questions displayed below.]
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)
Direct labor used (in March)
$ 32,200
Overhead applied (March)
23,200
13,200
$ 38,200
21,200
12,200
Costs during April
Direct materials used
143,000
Direct labor used.
Overhead applied
Status on April 30
88,200
?
Finished
(sold)
228,000 $ 108,000
158,000
?
Finished
(unsold)
113,000
?
In process
Additional Information
a. Raw Materials Inventory has a March 31 balance of $83,200.
b. Raw materials purchases in April are $508,000, and total factory payroll cost in April is $371,000.
c. Actual overhead costs incurred in April are indirect materials, $52,000; indirect labor, $25,000; factory rent,
$34,000; factory utilities, $21,000; and factory equipment depreciation, $53,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $643,000 cash in April.
Problem 19-2A (Algo) Part 5
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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