Question

Problem 15-02A For the year ended December 31, 2020, 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 $26,500 $25,440 $30,528 $82,468 Current year’s costs 31,800 38,160 45,792 115,752 7641 Balance 1/1 11,660 19,080 22,896 53,636 Current year’s costs 45,580 50,880 61,056 157,516 7642 Current year’s costs 61,480 58,300 69,960 189,740 Other data: 1. Raw materials inventory totaled $15,900 on January 1. During the year, $148,400 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $92,220 and Job No. 7639 for $97,520. 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 $561,800. 5. Manufacturing overhead incurred on account totaled $127,200. 6. Other manufacturing overhead consisted of indirect materials $14,840, indirect labor $19,080, and depreciation on factory machinery $8,480. Your answer is partially correct. Try again. Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. 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 Direct MaterialsDirect LaborManufacturing OverheadCompleted WorkBalance BalanceDirect LaborManufacturing OverheadCompleted WorkDirect Materials BalanceManufacturing OverheadDirect MaterialsCompleted WorkDirect Labor Completed WorkDirect LaborBalanceManufacturing OverheadDirect Materials Direct LaborManufacturing OverheadCompleted WorkDirect MaterialsBalance Manufacturing OverheadBalanceDirect LaborDirect MaterialsCompleted Work BalanceDirect MaterialsManufacturing OverheadDirect LaborCompleted Work BalanceDirect LaborManufacturing OverheadDirect MaterialsCompleted Work 12/31 Direct MaterialsCompleted WorkBalanceDirect LaborManufacturing Overhead BalanceManufacturing OverheadDirect LaborCompleted WorkDirect Materials Work in process balance $ Unfinished job No. 7638No. 7639No. 7640No. 7641No. 7642 $ LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. 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 VIDEO Your answer is incorrect. Try again. Determine the gross profit to be reported for 2020. Gross profit $

Answer 1

		Job cost sheet
			job 7640	job7641	job 7642
Balance 1/1
Direct materials			26,500	11,660		38,160
Direct labor			25,440	19,080		44,520
Manufacturing overhead			30,528	22,896		53,424
total beginning balance 1/1			82,468	53,636		136,104
Cost added during the year
Direct materials			31,800	45,580	61,480	138,860
Direct labor			38,160	50,880	58,300	147,340
Manufacturing overhead			45,792	61,056	69,960	176,808
Total cost added during the yr			115,752	157,516	189,740	463,008
total cost of jobs			198,220	211,152	189,740	599,112
only job 7642 is uncompleted , its balance is 189.740
completed work (job 7640+7641) that is 198220+211152=						409,372
balance in finished goods inventory will equal job 7640
		Work in process inventory
1-Jan	Balance		136,104	Completed work		409,372
	Direct materials		138,860
	Direct labor		147,340
	Manufacturing overhead		176,808
31-Dec	Balance		189,740
Work in process balance			189,740
unfinished jobs		no 7642	189,740
Account titles and explanations				Debit	Credit
Manufacturing overhead				7,208
Cost of good ssold					7,208
(176,808 applied - 127,200 incurred-14,840 Ind mat-19,080ind Lab-8,480 dep)
Gross profit
Sales					561,800
less cost of goods sold					393,684
Gross profit					168,116
finished goods
beg bal	189,740
WIP	409,372	COGS	400,892
end bal	198,220
adjusted cost of goods sold = 400892-7208
			393,684