Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. marcelino co.'s march 31 inventory of raw material

Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April...

50.1K

Verified Solution

Question

Accounting

Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $24,000; factory rent, $30,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $695,000 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 $ 30,000 $ 44,000
Direct labor 22,000 15,000
Applied overhead 11,000 7,500
Costs during April
Direct materials 132,000 220,000 $ 115,000
Direct labor 100,000 154,000 101,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process

4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students