Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4

PART 4

Compute gross profit for April.

Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $390,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $29,000; factory rent, $32,000; factory utilities, $22,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $670,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 25,000 24,000 12,000 $ 45,000 16,000 8,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 134,000 104,000 220,000 155,000 ? Finished (unsold) $115,000 102,000 ? In process Finished (sold) Problem 02.1A Part 1 Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). Job 306 Job 307 Job 308 April Total From March Direct Materials $ 25,000 $ 70,000 45,000 16,000 Direct Labor 24,000 40,000 12.000 8,000 20,000 $ 61,000 $ 69,000 $ 0 $ 130,000 Applied overhead Beginning goods in process For April Direct Materials 134,000 220,000 115,000 469,000 Direct Labor 104,000 155,000 102,000 361,000 0 Applied overhead Total costs added in April 238,000 375,000 217,000 830,000 Total costs (April 30) $ 0 In process Status on April 30 April 30 cost included in: Finished (sold) Cost of goods sold Finished (unsold) Finished goods inventory Work in process inventory X Answer is not complete. No Transaction General Journal Debit Credit 1 Raw materials inventory Accounts payable 2 . Work in process inventory Raw materials inventory OO 3 C Work in process inventory Cash OO 4 d Factory overhead Cash 5 e. Work in process inventory Factory overhead 6 f(1) Factory overhead Raw materials inventory 7 f(2) Factory overhead Cash 00 f(3) Factory overhead Accumulated depreciation-factory equipment 9 f(4) Factory overhead Cash 10 9 Finished goods inventory Work in process inventory OO oo 11 h. Cost of goods sold Finished goods inventory 12 Cash Sales 13 - Cost of goods sold Factory overhead Answer is not complete. MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Direct materials used Direct labor used 0 Factory overhead applied Total manufacturing costs Add: Work in process March 31 Total cost of work in process Less: Work in process April 30 Cost of goods manufactured 0 $ 0 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 $ 0