Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $388,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $28,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $630,000 cash in April. Costs of the three jobs worked on in April follow.

Gross Profit for Job 306 is $192,000

Step-by-step explanation:

Raw Material used $682,000

Indirect Material used $53,000

Indirect Labor $28,000

Factory rent $36,000

Factory utilities $25,000

Factory equipment depreciation $52,000

Total cost $876,000

Job 306 cost allocation :  $876,000 * 50% = $438,000

Revenue of Job 306 : $630,000

Gross Profit = $192,000

step-by-step explanation:

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