Required information

Problem 19-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4

[The following information applies to the questions displayed below.]

Ciolino Co.'s March 31 inventory of raw materials is $190,000. Raw materials purchases in April are $470,000, and factory payroll cost in April is $250,000. Overhead costs incurred in April are: indirect materials, $30,000; indirect labor, $15,000; factory rent, $15,000; factory utilities, $13,000; and factory equipment depreciation, $38,750. The predetermined overhead rate is 45% of direct labor cost. Job 306 is sold for $340,000 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		$	17,000			$	13,000
Direct labor			21,000				9,000
Applied overhead			9,450				4,050
Costs during April
Direct materials			105,000				180,000			$	75,000
Direct labor			22,000				73,000				140,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

Problem 19-1A Part 2

a.	Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.)
b.	Assignment of direct materials, direct labor, and applied overhead costs to the Goods in Process Inventory.
c.	Transfer of Jobs 306 and 307 to the Finished Goods Inventory.
d.	Cost of goods sold for Job 306.
e.	Revenue from the sale of Job 306.
f.	Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2.	Prepare journal entries for the month of April to record the above transactions.

Problem 19-1A Part 3

3.	Prepare a manufacturing statement for April (use a single line presentation for direct materials and show the details of overhead cost).

Problem 19-1A Part 4

4.1	Compute gross profit for April.

4.2	Show how to present the inventories on the April 30 balance sheet.