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Marco Company shows the following costs for three jobs worked on in April. ...

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Question

Accounting

Marco Company shows the following costs for three jobs worked on in April.

Job 306 Job 307 Job 308
Balances on March 31
Direct materials used (in March) $ 31,000 $ 37,000
Direct labor used (in March) 22,000 20,000
Overhead applied (March) 12,000 11,000
Costs during April
Direct materials used 140,000 225,000 $ 105,000
Direct labor used 87,000 155,000 110,000
Overhead applied ?question mark ?question mark ?question mark
Status on April 30 Finished (sold) Finished (unsold) In process

Additional Information

  1. Raw Materials Inventory has a March 31 balance of $82,000.
  2. Raw materials purchases in April are $505,000, and total factory payroll cost in April is $368,000.
  3. Actual overhead costs incurred in April are indirect materials, $51,250; indirect labor, $24,250; factory rent, $33,250; factory utilities, $20,250; and factory equipment depreciation, $52,250.
  4. Predetermined overhead rate is 50% of direct labor cost.
  5. Job 306 is sold for $640,000 cash in April.

Problem 19-2A (Algo) Part 5

5-a. Compute gross profit for April.

5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.

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