l Conet 18P the work you have completed so far It does not i

l Conet 18P the work you have completed so far. It does not indicate Required information Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 (The following information applies to the questions displayed below Marcelino Co\'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are $540,000, and factory payroll cost in April is $363,000. in A $21.000 factory rent, $39.000, factory utilities, $23,000: predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $675,000 cash in April. Costs of the three jobs worked on in April follow 0 Overhead costs incurred in April are: indirect materials, $59,000, indirect labor, and factory equipment depreciation, $55,000. The Balances on March 31 Direct materials Direct labor s 25,000$ 39,800 28,880 18,800 17,000 8,580 Direct materials Direct labor Applied overhead 139,000205,e00 $12e,000 1e0,000 155,000 103,0 Eoaned Fanisned In process (sold)(unsold) Status on April 38 Finished Problem 15-1A Part 4 41 Compute gross profit for April.

Solution

Calculation of Overhead Applied :-

Job 306 :-

Applied Overhead = Direct Labor Cost * Predetermined Overhead Rate on Direct Labor Cost

= $100000*50%

= $50000

Job 307 :-

Applied Overhead = $155000*50%

= $77500

Job 308 :-

Applied Overhead = $103000*50%

= $51500

Total Overhead applied = $50000 + $77500 + $51500

= $179000

Total Overhead Incurred = $59000 + $21000 + $39000 + $23000 + $55000

= $197000

Total Cost of Job 306 :-

Cost of Goods Sold = Total Cost + Underapplied Overhead

= $344000 + ($197000 - $179000)

= $344000 + $18000

= $362000

Calculation of Gross Profit :-

= Sales Revenue - Cost of Goods Sold

= $675000 - $362000

= $313000

Gross Profit is $313000.

Particulars	Amount($)
Balances on March 31
Direct Materials	25000
Direct Labor	20000
Applied Overhead	10000
Costs During April
Direct Materials	139000
Direct Labor	100000
Applied Overhead	50000
Total Cost	344000