Required information The following information applies to th

Required information [The following information applies to the questions displayed below.] Marcelino Co.\'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $362,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $20,000; factory rent, $33,000; factory utilities, $25,000; and factory equipment depreciation, $54,000. The predeterminec overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow Job 306 Job 307 Job 308 Balances on March 31 Direct materials Direct labor Applied overhead $ 30,000 25,000 12,500 $ 37,000 16,000 8,000 Costs during April 137,000 103,000 205,000 $105,000 102,000 Direct materials Direct labor Applied overhead Status on April 30 151,000 Finished (sold) Finished_ unsold) 1d) process

Solution

1.

2.

3.

4. Gross Profit: $315000

Gross profit = Sales - Cost of goods sold = $680000 - ($359000 + $6000) = $680000 - $365000 = $315000

	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	30000	37000		67000
Direct Labor	25000	16000		41000
Applied overhead	12500	8000		20500
Beginning goods in process	67500	61000		128500
For April
Direct Materials	137000	205000	105000	447000
Direct Labor	103000	151000	102000	356000
Applied overhead	51500	75500	51000	178000
Total costs added in April	291500	431500	258000	981000
Total costs (April 30)	359000	492500	258000	1109500
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods	Work in process