Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (The following information applies to the questions displayed below.] Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $383,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $26,000; factory rent, $34,000; factory utilities, $23,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 30,000 22,000 11,000 $ 36,000 15,000 7,500 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 131,000 101,000 ? Finished (sold) 210,000 153,000 ? Finished (unsold) $110,000 103,000 ? In process Problem 15-1A 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 $ $ 30,000 22,000 11,000 Direct Labor Applied overhead Beginning goods in process For April Direct Materials 36,000 15,000 7,500 58,500 $ 66,000 37,000 18,500 $ 121,500 $ 63,000 $ $ 0 131,000 110,000 Direct Labor Applied overhead Total costs added in April 101,000 50,500 282,500 210,000 153,000 76,500 439,500 103,000 51,500 264,500 451,000 357,000 178,500 986,500 Total costs (April 30) $ 264,500 $ 264,500 Finished (sold) Status on April 30 April 30 cost included in: Finished (unsold) Finished goods inventory In process Work in process inventory Cost of goods sold Problem 15-1A Part 2 a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory. f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. Revenue from the sale of Job 306. j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 2. Prepare journal entries for the month of April to record the above transactions. Problem 15-1A 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 Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials $ 75,000 264,500 Work in process Finished goods Total inventories $ 339,500