Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $590,000

Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $25,000; factory rent, $37,000; factory utilities, $21,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 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 $ 28,000 $ 36,000 Direct labor 22,000 16,000 Applied overhead 11,000 8,000 Costs during April Direct materials 131,000 205,000 $ 105,000 Direct labor 103,000 150,000 102,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Show how to present the inventories on the April 30 balance sheet. Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory. f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. Revenue from the sale of Job 306. j. 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. 3. Prepare a schedule of cost of goods manufactured. 4.1 Compute gross profit for April. 4.2 Show how to present the inventories on the April 30 balance sheet.

Thomas Book​ Sales, Inc., supplies textbooks to college and university bookstores

Thomas Book​ Sales, Inc., supplies textbooks to college and university bookstores.  The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days.  In​ 2014, Thomas shipped and billed book titles totaling ​$620 comma 000620,000. ​ Collections, net of return​ credits, during the year totaled ​$558 comma 584558,584.  The company spent ​$236 comma 974236,974 acquiring the books that it shipped.

a.  Using accrual accounting and the preceding​ values, show the​ firm's net profit for the past year.

b. Using cash accounting and the preceding​ values, show the​ firm's net cash flow for the past year.

c. Which of these statements is more useful to the financil​ manager? Why?

Contact Us Below To Get Tutoring