Required information

Problem 19-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4

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Ciolino Co.'s March 31 inventory of raw materials is $180,000. Raw materials purchases in April are $440,000, and factory payroll cost in April is $238,000. Overhead costs incurred in April are: indirect materials, $21,000; indirect labor, $13,000; factory rent, $21,000; factory utilities, $13,000; and factory equipment depreciation, $27,800. The predetermined overhead rate is 40% of direct labor cost. Job 306 is sold for $370,000 cash in April. Costs of the three jobs worked on in April follow.

Problem 19-1A Part 4

4.1	Compute gross profit for April.

4.2	Show how to present the inventories on the April 30 balance sheet.

Job 306 Job 307 Job 308 $ 16,000 15,000 6,000 $ 17,000 14,000 5,600 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead 105,000 31,000 180,000 74,000 $ 75,000 120,000 ? Status on April 30 Finished (sold) Finished (unsold) In process 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 $ 17,000 $ 33,000 Direct Labor 29,000 16,000 15,000 6,000 37,000 14,000 5,600 36,600 11,600 73,600 $ $ | $ Applied overhead Beginning goods in process For April Direct Materials Direct Labor 105,000 31,000 180,000 74,000 75,000 120,000 360,000 225,000 Applied overhead 0 136,000 254,000 195,000 585,000 Total costs added in April Total costs (April 30) Status on April 30 Finished (sold) Finished (unsold) in process April 30 cost included in: Problem 19-1A Part 2 a. Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.) b. Assignment of direct materials, direct labor, and applied overhead costs to the Goods in Process Inventory. c. Transfer of Jobs 306 and 307 to the Finished Goods Inventory. d. Cost of goods sold for Job 306. e. Revenue from the sale of Job 306. f. 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. CIOLINO COMPANY Manufacturing Statement For Month Ended April 30 Factory overhead Total factory overhead Total manufacturing costs Total cost of goods in process Cost of goods manufactured