Question

Question 9 For the year ended December 31, 2020, the job cost sheets of Devoe Company contained the following data: Direct Direct Manufacturing Total Job Number Explanation Materials Labour Overhead Costs 7640 Balance 1/1 $25,700 $24,800 $29,700 $80,200 Current year's costs 30,900 35,600 43,200 109,700 7641 Balance 1/1 11,800 18,200 22,300 52,300 Current year's costs 43,600 48,300 58,000 149,900 7642 Current year's costs 48,500 55,700 66,100 170,300 Other data: 1. Raw materials inventory totalled $15,900 on January 1. During the year, $140,900 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $87,700 and Job No. 7639 for $92,800. 3. Job No. 7640 and Job No. 7641 were completed during the year. 4. Jobs 7638, 7639, and 7641 were sold on account for $530,000. 5. Manufacturing overhead incurred on account totalled $113,700. 6. Other manufacturing overhead consisted of indirect materials $13,100, indirect labour $19,900, and depreciation on factory machinery $7,600. Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Calculate each of the following, then post eac problem statement.) $ 1. beginning balance 2. direct materials S 3. direct labour $ 4. manufacturing overhead $ 5. completed jobs $ closing balance $ Work in Process Inventory 1/1 12/31

Answer 1

1)Beginning Balance = Balance 1/1 for Job7640 + Balance 1/1for Job 7641

                      = 80200+52300

                      = 132500

2)Direct Material for current Period = Direct material used in Job 7640 +7641 +7642

                     = 30900+43600+48500

                     = 123000

3)Direct labor = Direct labor worked on Job 7640 +7641 +7642

             = 35600+48300+55700

             = 139600

4)Manufacturing overhead = Manufacturing overhead incurred on Job 7640 +7641 +7642

                  = 43200+58000+66100

                 = 167300

5)Completed Jobs =Cost of Job 7640 +7641

        = (80200+109700) + (52300+149900)

        = 189900 + 202200

        = 392100

6)closing balance =cost of Job 7642 = 170300

WORK IN PROCESS INVENTORY
Beg Bal 1/1	132500	completed and transferred out to finished goods inventory	392100
Direct material	123000
Direct labor	139600
manufacturing overhead	167300
End Bal12/31	170300