Marcelino Cos March 31 inventory of raw materials is 84000 R

Marcelino Co.\'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $367,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor $23,000; factory rent, $39,000; factory utilities, $23,000; and factory equipment depreciation, $58,000. The 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 Job 306 Job 307 Job 308 Balances on March 31 s 29,000 24,000 12,000 s 37,000 Direct materials Direct labor Applied overhead 17,000 8,500 Costs during April 136,000 104,000 220,000 $115,000 102,000 Direct materials Direct labor Applied overhead Status on April 30 153,000 Finished (sold) In Finished (unsold) proce33 4.1 Compute gross profit for April Gross Profit 4.2 Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials Work in process Finished goods Total inventories

Solution

Workings:

4.1	Gross profit for April: $318000
	Job 306
	Sales $	675000
	Cost of goods sold	357000
	Gross profit $	318000
4.2	Inventories
	Raw materials	89000
	Work in process	268000
	Finished goods	512000
	Total inventories	869000