Marco Company shows the following costs for three jobs worked on in April. Balances on March...
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Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March). Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 Job 307 Job 308 $ 30,600 21,600 11,600 $ 36,600 19,600 10,600 139,000 86,600 ? 224,000 154,000 ? $ 104,000 109,000 ? Finished (sold) Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $81,600. b. Raw materials purchases in April are $504,000, and total factory payroll cost in April is $367,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $33,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $639,000 cash in April. a. Compute gross profit for April. b. Show how the three inventory accounts are reported on the April 30 balance sheet. Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March). Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 Job 307 Job 308 $ 30,600 21,600 11,600 $ 36,600 19,600 10,600 139,000 86,600 ? 224,000 154,000 ? $ 104,000 109,000 ? Finished (sold) Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $81,600. b. Raw materials purchases in April are $504,000, and total factory payroll cost in April is $367,000. c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $33,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $639,000 cash in April. a. Compute gross profit for April. b. Show how the three inventory accounts are reported on the April 30 balance sheet.
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To solve this problem we need to calculate the costs incurred for each job and then use that information to compute the gross profit for April and det... View the full answer
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