Required information [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 $376,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $24,000; factory rent, $40,000; factory utilities, $24,000, and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 Eash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 $ 27,000 23,000 11,500 $ 39,000 14,000 7,000 Balances on March 31 Direct materials Direct labor Applied overhead Costs during April Direct materials Direct labor Applied overhead Status on April 30 134,000 100,000 205,000 150,000 $ 105,000 102,000 Finished (sold) Finished (unsold) In process 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. No Transaction General Journal Credit Debit 500,000 Raw materials inventory Accounts payable 500,000 444,000 Work in process inventory Raw materials inventory 444,000 3 37,000 Work in process inventory Cash 37,000 24,000 Factory overhead Cash 24,000 5 176,000 Work in process inventory Factory overhead 176,000 6 f(1). 57,000 Factory overhead Raw materials inventory 57,000 7 f(2) 24,000 Factory overhead Cash 24,000 f(3) 56,000 Factory overhead Accumulated depreciation-factory equipment 56,000 40,000 Factory overhead Cash 40,000 714,000 Finished goods inventory Work in process inventory 714,000 h. 345,500 Cost of goods sold Finished goods inventory 345,500 680,000 Cash Sales 680,000 Cost of goods sold Factory overhead 3. Prepare a schedule of cost of goods manufactured. MARCELINO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured 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 Compute gross profit for April. Gross profit
