107k views
1 vote
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) $ 29,000 $ 35,000
Direct labor used (in March) 20,000 18,000
Overhead applied (March) 10,000 9,000
Costs during April Direct materials used 135,000 220,000 $ 100,000
Direct labor used 85,000 150,000 105,000
Overhead applied ? ? ?
Required:
1. Determine the amount of overhead applied to each job in April.
2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31).
3. Prepare a schedule of cost of goods manufactured for the month end April 30.
4-a. Compute gross profit for April.
4-b. Show how the three inventory accounts are reported on the April 30 balance sheet.

User Dion V
by
5.1k points

1 Answer

12 votes

Final answer:

Without the overhead rate and additional financial data, we cannot accurately calculate the overhead applied or complete the other required tasks. A similar calculation shows that a firm with sales of $1 million and costs of $950,000 would have an accounting profit of $50,000.

Step-by-step explanation:

The question primarily pertains to cost accounting in a manufacturing setup. The student needs to determine the amount of overhead applied to each job, total job costs including balances from March, schedule of cost of goods manufactured, compute gross profit, and present the inventory accounts on the balance sheet. However, we lack the overhead rate needed to calculate the overhead applied in April and data for the sales, beginning inventory, and ending inventory needed for calculating the gross profit and inventory reporting on the balance sheet. Therefore, a complete calculation is not feasible with the provided information. We can use the self-check questions reference to solve a similar problem:

For a firm that had sales revenue of $1 million, spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, the accounting profit can be calculated as follows:

Accounting profit = Sales revenue - (Labor costs + Capital costs + Materials costs)
= $1,000,000 - ($600,000 + $150,000 + $200,000)
= $1,000,000 - $950,000
= $50,000

This calculation indicates that the firm's accounting profit was $50,000 for the year.

User Thibaut Loiseleur
by
5.8k points