Problem 162A Part Level Submission For the year ended Decemb

Problem 16-2A (Part Level Submission) For the year ended December 31, 2017, the job cost sheets of Cinta Company contained the following data Job Number 7640 Direct Materials Labor Direct ManufacturingTotal Overhead Explanation Costs 7641 7642 Other data Balance 1/1 Current year\'s costs Balance 1/1 Current year\'s costs Current vear\'s costs $25,000 $24,000 30,000 36,000 18,000 43,000 48,000 58,000 55,000 $28,800 $77,800 43,200 109,200 21,600 50,600 57,600 148,600 66,000 179,000 11,000 1 Raw materials inventory totaled $15,000 on January 1. During the year, $140,000 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $87,000 and Job No. 7639 for $92,000 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 $530,000 5. Manufacturing overhead incurred on account totaled $120,000 6. Other manufacturing overhead consisted of indirect materials $14,000, indirect labor $18,000, and depreciation on factory machinery $8,000

Solution

Job 7640 Job 7641 Job 7642 Beginning cost 77800 50600 Current year cost Material 30000 43000 58000 Labour 36000 48000 55000 Overheads 43200 57600 66000 Total cost 187000 199200 179000 Gross Profit for the period: Sales revenue of 7638, 7639 and 7641 530000 Less: Cost of Goods sold Job 7638 87000 Job 7639 92000 Job 7641 199200 Total cost of Goods sold 378200 Gross Profit for the period: 151800