Required information Problem 2-2A (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. 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 Additional Information Job 306 $ 31,800 22,800 12,800 142,000 87,800 ? Finished (sold) Job 307 $ 37,800 20,800 11,800 Job 308 227,000 $ 107,000 157,000 112,000 ? ? In process Finished (unsold) a. Raw Materials Inventory has a March 31 balance of $82,800. b. Raw materials purchases in April are $507,000, and total factory payroll cost in April is $370,000. c. Actual overhead costs incurred in April are indirect materials, $51,750; indirect labor, $24,750; factory rent, $33,750; factory utilities, $20,750; and factory equipment depreciation, $52,750. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $642,000 cash in April.
Required information Problem 2-2A (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. 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 Additional Information Job 306 $ 31,800 22,800 12,800 142,000 87,800 ? Finished (sold) Job 307 $ 37,800 20,800 11,800 Job 308 227,000 $ 107,000 157,000 112,000 ? ? In process Finished (unsold) a. Raw Materials Inventory has a March 31 balance of $82,800. b. Raw materials purchases in April are $507,000, and total factory payroll cost in April is $370,000. c. Actual overhead costs incurred in April are indirect materials, $51,750; indirect labor, $24,750; factory rent, $33,750; factory utilities, $20,750; and factory equipment depreciation, $52,750. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $642,000 cash in April.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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Transcribed Image Text:Problem 2-2A (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.
Complete this question by entering your answers in the tabs below.
Req 5A
Compute gross profit for April.
Gross profit
Req 5B
Problem 2-2A (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.
Complete this question by entering your answers in the tabs below.
Req 5A
Raw materials
Work in process
Finished goods
Total inventories
Req 5B
Show how the three inventory accounts are reported on the April 30 balance sheet.
Inventories
275,000
$ 275,000
![Required information
Problem 2-2A (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.
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
Additional Information
Job 306
$ 31,800
22,800
12,800
142,000
87,800
?
Finished
(sold)
Job 307
$ 37,800
20,800
11,800
Job 308
227,000 $ 107,000
157,000
?
Finished
(unsold)
112,000
?
In process
a. Raw Materials Inventory has a March 31 balance of $82,800.
b. Raw materials purchases in April are $507,000, and total factory payroll cost in April is $370,000.
c. Actual overhead costs incurred in April are indirect materials, $51,750; indirect labor, $24,750; factory
rent, $33,750; factory utilities, $20,750; and factory equipment depreciation, $52,750.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $642,000 cash in April.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F973e559d-6a8f-44f8-bf38-31811ae2286e%2F389766ea-a0bc-4747-a66d-b7d6eac996a7%2Ft4op8km_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 2-2A (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.
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
Additional Information
Job 306
$ 31,800
22,800
12,800
142,000
87,800
?
Finished
(sold)
Job 307
$ 37,800
20,800
11,800
Job 308
227,000 $ 107,000
157,000
?
Finished
(unsold)
112,000
?
In process
a. Raw Materials Inventory has a March 31 balance of $82,800.
b. Raw materials purchases in April are $507,000, and total factory payroll cost in April is $370,000.
c. Actual overhead costs incurred in April are indirect materials, $51,750; indirect labor, $24,750; factory
rent, $33,750; factory utilities, $20,750; and factory equipment depreciation, $52,750.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $642,000 cash in April.
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