Problem 202A For the year ended December 31 2017 the job cos

Problem 20-2A For the year ended December 31, 2017, the job cost sheets of Cinta Company contained the following data Job Number Explanation Materials 7640 Direct Direct Manufacturing Total $25,250 $24,240 30,300 36,360 11,110 18,180 Current year\'s costs 43,430 48,480 642 Current year\'s costs 58,580 55,550 Labor Overhead Costs 29,088 $78,578 43,632 110,292 21,816 51,106 58,176 150,086 66,660 180,790 Balance 1/1 Current year\'s costs Balance 1/1 7641 Other data 1. Raw materials inventory totaled $15,150 on January 1. During the year, $141,400 of raw materials were purchased on account 2 Finished goods on January 1 consisted of 3ob No. 7638 for $87,870 and Job No. 7639 for $92,920 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 $535,300 5. Manufacturing overhead incurred on account totaled $121,200. 6. Other manufacturing overhead consisted of indirect materials $14,140, indirect labor $18,180, and depreciation on factory machinery $8,080.

Solution

Job cost sheet job 7640 job7641 job 7642 Balance 1/1 Direct materials 25,250 11,110 36,360 Direct labor 24,240 18,180 42,420 Manufacturing overhead 29,088 21,816 50,904 total beginning balance 1/1 78,578 51,106 129,684 Cost added during the year Direct materials 30,300 43,430 58,580 132,310 Direct labor 36,360 48,480 55,550 140,390 Manufacturing overhead 43,632 58,176 66,660 168,468 Total cost added during the yr 110,292 150,086 180,790 441,168 total cost of jobs 188,870 201,192 180,790 570,852 only job 7642 is uncompleted , its balance is 180,790 completed work (job 7640+7641) that is 188,870+201192= 390,062 Work in process inventory 1-Jan Balance 129,684 Completed work 390,062 Direct materials 132,310 Direct labor 140,390 Manufacturing overhead 168,468 31-Dec Balance 180,790 Work in process balance 180,790 unfinished jobs no 7642 180,790 Account titles and explanations Debit Credit Manufacturing overhead 7,868 Cost of good ssold 7,868 (169,468-121,200-14,140-18,180-8080) Gross profit Sales 535,500 less cost of goods sold 374,114 Gross profit 161,386 finished goods beg bal 180,790 WIP 390,062 COGS 381,982 end bal 188,870 adjusted cost of goods sold = 381982-7868 374114