Question

all answers are correct I just need gross profit calculated

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		$25,500		$24,480		$29,376		$79,356
		Current year’s costs		30,600		36,720		44,064		111,384
7641		Balance 1/1		11,220		18,360		22,032		51,612
		Current year’s costs		43,860		48,960		58,752		151,572
7642		Current year’s costs		59,160		56,100		67,320		182,580

Other data:

1.		Raw materials inventory totaled $15,300 on January 1. During the year, $142,800 of raw materials were purchased on account.
2.		Finished goods on January 1 consisted of Job No. 7638 for $88,740 and Job No. 7639 for $93,840.
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 $540,600.
5.		Manufacturing overhead incurred on account totaled $122,400.
6.		Other manufacturing overhead consisted of indirect materials $14,280, indirect labor $18,360, and depreciation on factory machinery $8,160.

Correct answer iconYour answer is correct.

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	Completed WorkBalanceDirect MaterialsManufacturing OverheadDirect Labor		Direct MaterialsDirect LaborManufacturing OverheadBalanceCompleted Work
	Direct LaborManufacturing OverheadBalanceDirect MaterialsCompleted Work		Completed WorkBalanceManufacturing OverheadDirect LaborDirect Materials
	Direct LaborCompleted WorkDirect MaterialsBalanceManufacturing Overhead		Direct LaborDirect MaterialsManufacturing OverheadCompleted WorkBalance
	Direct LaborBalanceCompleted WorkManufacturing OverheadDirect Materials		Direct MaterialsManufacturing OverheadDirect LaborBalanceCompleted Work
12/31	BalanceDirect LaborCompleted WorkManufacturing OverheadDirect Materials		BalanceManufacturing OverheadDirect LaborCompleted WorkDirect Materials

Work in process balance		$
Unfinished job                                                                       No. 7638No. 7639No. 7640No. 7641No. 7642		$

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List of Accounts

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Correct answer iconYour answer is correct.

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

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List of Accounts

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Incorrect answer iconYour answer is incorrect.

Determine the gross profit to be reported for 2020.

Gross profit

$ ????????

Answer 1

Sales		$ 540,600.00
Cost of goods sold:
Add:  Job 7638	$                                             88,740.00
Job 7639	$                                             93,840.00
Job 7641 (51612 + 151,572)	$                                           203,184.00
	$                                           385,764.00
Less: Overapplied overhead	$                                              (6,936.00)	$ 378,828.00
Gross Profit		$ 161,772.00
Actual overhead costs = 122400+14280+18360+8160	$                                           163,200.00
Applied overhead (44064 + 58752 + 67,320)	$                                           170,136.00
Overapplied overhead	$                                               6,936.00
	Debit	Credit
Manufacturing Overhead	$                                               6,936.00
Cost of Good Sold		$     6,936.00