The following information applies to the questions displayed

[The following information applies to the questions displayed below.]

Marcelino Co.\'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.

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
Balances on March 31
Direct materials		$	29,000			$	35,000
Direct labor			20,000				18,000
Applied overhead			10,000				9,000
Costs during April
Direct materials			135,000				220,000			$	100,000
Direct labor			85,000				150,000				105,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)	Finished (unsold)		In process

Solution

Job 306 Job 307 Job 308 April 1) total From March Direct materials 29,000 35,000 64,000 Direct labor 20,000 18,000 38,000 applied overhead 10,000 9,000 19,000 Beginning goods in process 59,000 62,000 121,000 For April Direct materials 135,000 220,000 100,000 455,000 Direct labor 85,000 150,000 105,000 340,000 applied overhead 42500 75000 52500 170,000 Total costs added in April 262,500 445,000 257,500 965,000 total costs (April 30) 321,500 507,000 257,500 1,086,000 Satus on april 30 fin(sold) fin(unsold) in process April costs included in : COGS finished WIP goods inventory 2) TR General journal Debit Credit a. Raw materials inventory 500,000 Accounts payable 500,000 b. Work in process inventory 455,000 Raw materials inventory 455,000 c. Work in process inventory 340,000 Cash 340,000 d. Factory overhead 23,000 cash 23,000 e. Factory overhead 170,000 work in process inventory 170,000 f. Factory overhead 152,000 Raw materials inventory 50,000 Cash 51,000 Accumulated Depreciation 51,000 g. finished goods inventory 828,500 Work in process inventory 828,500 h. Cost of goods sold 321,500 finished goods inventory 321,500 i. Cash 635,000 sales 635,000 j. cost of goods sold 5,000 Factory overhead 5,000 3) Schedule of goods of goods manufactured direct materials used 455,000 Direct labor used 340,000 factory overhead applied 170,000 total manufacturing costs 965,000 Add:work in process March 31 121,000 total cost of work in process 1,086,000 less:work in process April 30 257,500 cost of goods manufactured 828,500 4) Gross profit sales 635,000 less cost of goods sold (321500+5000)= 326,500 Gross profit 308,500 5) inventories Raw materials 75,000 work in process 257,500 finished goods 507,000 total inventories 839,500 Working notes Actual overhead indirect material 50,000 indirect labor 23,000 depreciation 51,000 Factory rent 32,000 factory utilities 19,000 total 175,000 overhead applied 170,000 under applied overhead 5,000 Raw materials inventory beginning raw materials 80,000 purchased 500,000 direct materials used -455,000 indirect materials used -50,000 ending raw materials inventory 75,000