Question

Question 9 For the year ended December 31, 2020, the job cost sheets of DeVoe Company contained the following data: Direct Materials Direct Labour Total Costs Job Number Explanation 7640 Balance 1/1 Current year's costs Balance 1/1 $25,100 30,500 11,800 43,600 48,300 7641 Manufacturing Overhead $28,900 43,900 22,100 57,900 66,800 $24,900 35,400 18,800 48,300 55,000 $78,900 109,800 52,700 149,800 170,100 Current year's costs Current year's costs 7642 Other data: 1. Raw materials inventory totalled $15,100 on January 1. During the year, $140,600 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $87,900 and Job No. 7639 for $92,500. 3. Job No. 7640 and Job No. 7641 were completed during the year. 4. Jobs 7638, 7639, and 7641 were sold on account for $530,900. 5. Manufacturing overhead incurred on account totalled $113,600. 6. Other manufacturing overhead consisted of indirect materials $13,000, indirect labour $19,600, and depreciation on factory machinery $7,700.

Answer 1

1.

Beginning balance ($78,900 + 52,700)	$131,600
Direct materials ($30,500 + 43,600 + 48,300)	122,400
Direct labor ($35,400 + 48,300 + 55,000)	138,700
Manufacturing overhead ($43,900 + 57,900 + 66,800)	168,600
Completed jobs ($78900 + 109800 + 52700 + 149,800)	391,200
Closing balance	170,100

2. Work in process inventory

1/1	Beginning balance	$131,600	Completed job	391,200
	Direct material	122,400
	Direct labor	138,700
	Manufacturing overhead	168,600
12/31	Closing balance	170,100

3.

Applied manufacturing overhead = Job 7640 + Job 7641 + Job 7642

= $43,900 + 57,900 + 66,800

= $168,600

Actual manufacturing overhead = Incurred on account + indirect material + indirect labor + depreciation

= $113,600 + 13,000 + 19,600 + 7,700

= $153,900

Manufacturing overhead overapplied = $168,600 - 153,900 = $7,600

General Journal	Debit	Credit
Manufacturing overhead	$14,700
Cost of goods sold		$14,700

4.

Sales		$530,900
Less: Cost of goods sold
Job 7638	$87,900
Job 7639	92,500
Job 7641 ($52,700 + 149,800)	202,500
Less: Overapplied overhead	(14,700)
		(368,200)
Gross profit		$162,700