Chapter 15 Homework Help 4 Required ir ormation The followin

Chapter 15- Homework Help 4 Required ir ormation The following information applies to the questions displayed below Part 4 of 4 Marcelino Co\'s March factory payroll cost in April is $387,000. Overhead costs incurred in $29,000; factory rent, $33,000 factory utlities, $20,000, and factory equipment depreciation, $55,000. The predetermined overhead rate is 50% of direct labor cost jobs worked on in April follow 31 inventory of raw materials is $89,000. Raw materials purchases in April are $590,000, and April are: indirect materials, $52,000: indirect labor, Job 306is sold fo sessooo cash n a costs of the nee 20 s 25,0003,003 Applied overhead Costs daring Apell 138,900 215,000 s10,0s0 03,000 155,0os i.00 naterials Applied overhead Status on Apri1 30 Piie Pinisei (sold) unsold) process 4.1 Compute gross profit for April, Gross Proft

Solution

Solution 4.1:

Gross profit = Sales - Cost of job 306

= $655,000 - $347,500 = $307,500

Solution 4.2:

Inventory balances on april 30:

Material = Beginning + Purchases - Requisitions = $89,000 + $590,000 - ($463,000 + $52,000)

= $164,000

Work in process = Cost of job 308 = $261,500

Finished goods = Cost of job 307 = $505,000

Total inventories = $164,000 + $261,500 + $505,000 = $930,500

Computation of Job Cost
Particulars	Job 306	Job 307	Job 308
Work In Process, beginning	$56,500.00	$57,500.00	$0.00
Cost during april:
Direct materials	$138,000.00	$215,000.00	$110,000.00
Direct labor	$102,000.00	$155,000.00	$101,000.00
Applied overhead (50% of direct labor)	$51,000.00	$77,500.00	$50,500.00
Total cost	$347,500.00	$505,000.00	$261,500.00