Question

Problem 20-2A For the year ended December 31, 2017, the job cost sheets of Cinta Company contained the following data. Job Number Explanation Direct Materials Direct Labor Manufacturing Overhead Total Costs 7640 Balance 1/1 $27,250 $26,160 $31,392 $84,802 Current year’s costs 32,700 39,240 47,088 119,028 7641 Balance 1/1 11,990 19,620 23,544 55,154 Current year’s costs 46,870 52,320 62,784 161,974 7642 Current year’s costs 63,220 59,950 71,940 195,110 Other data: 1. Raw materials inventory totaled $16,350 on January 1. During the year, $152,600 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $94,830 and Job No. 7639 for $100,280. 3. Job No. 7640 and Job No. 7641 were completed during the year. 4. Job Nos. 7638, 7639, and 7641 were sold on account for $577,700. 5. Manufacturing overhead incurred on account totaled $130,800. 6. Other manufacturing overhead consisted of indirect materials $15,260, indirect labor $19,620, and depreciation on factory machinery $8,720. Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. (Hint: Use a single T-account for Work in Process Inventory.) Post each to the T-account in the following order: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs. Work in Process Inventory 1/1 12/31 Work in process balance $ Unfinished job $ Link to Text Link to Text Link to Text Link to Text Link to Text Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Link to Text Link to Text Link to Text Link to Text Link to Text Determine the gross profit to be reported for 2017. Gross profit $ Link to Text Link to Text Link to Text Link to Text Link to Text Question Attempts: Unlimited Save for later Submit Answer

Answer 1

Job cost sheet
Job 7640
	Direct Material	Direct labor	manufacturing overhead	Total
Balance 1/1	$27,250	26160	31392	$84,802
Add: current cost	32700	39240	47088	$119,028
Total	$59,950	$65,400	$78,480	$203,830
Job 7641
	Direct Material	Direct labor	manufacturing overhead	Total
Balance 1/1	$11,990	19620	23544	$55,154
Add: current cost	46870	52320	62784	$161,974
Total	$58,860	$71,940	$86,328	$217,128
Job 7642
	Direct Material	Direct labor	manufacturing overhead	Total
Balance 1/1	$0	0	0	$0
Add: current cost	63220	59950	71940	$195,110
Total	$63,220	$59,950	$71,940	$195,110
ans T account
Work In process Inventory
Beginninng balance	$139,956	Finished Goods Inventory			$420,958
2) Direct material	142790
3) Direct labor	151510
4) Manufacturing overhead	181812
Ending balance	$195,110
Calculation
2) Direct material	32700+46870+63220		142790
3) Direct labor	39240+52320+59950		151510
4) Manufacturing overhead	47088+62784+71940		181812
Finished good inventory	203830+217128		$420,958
Work In process Inventory
Unfinished Job (7642)	$195,110
ans 2
Actual Manufacturing overhead	174400
(130800+15260+19620+8720)
Applied	181812
Overapplied	7412
entry	Dr	Cr
Manufacturing overhead	7412
Cost of good sold		7412
(being adjusting entry made)
If any doubt please comment