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P Jhené Aiko Radio-Now P #x y d WileyPLUS ? Not Secure | edugen.wileyplus.com/ed

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Question

P Jhené Aiko Radio-Now P #x y d WileyPLUS ? Not Secure | edugen.wileyplus.com/edugen/ti/main.uni Return to Blackboard WileyPLUS 730 gandt, Accounting Principles, 12e PRINTER VERSION BACH Problem 20-2A Chapter 20 For the year ended December 31, 2017, the jab cost sheets of Cinta Company contained the following data Job Number Direct Materials Labor Direct Manufacturing Total Overhead Problem 20-44 Explanation Costs Balance 1/1 Current year's costs Balance 1/1 Current year's cost Current year's costs $27,500 $26,400 33,000 39,600 12,100 19,800 47,300 52,800 63,800 60,500 S31,680 $85,580 47,520 120,120 23,760 55,660 63,360 163,460 72,600 196,900 Review Results by Study 641 Other data 1 Raw materials inventory totaled $16,500 on January 1. During the year, $154,000 of row materials were purchased on account 2 Finished goads on January 1 consisted of Job No. 7638 far $9S,700 and Jab No. 7639 for $101,200 3. Jab No. 7640 and Job No. 7641 were completed during the year 4. Job Nos. 7638, 7639, and 7641 were sold on account for $583,000. 5 Manufacturing overhead incurred on account totaled $132,000, 6. Other manufacturing overhead consisted of indirect materials $15,400, indirect labor $19,800, and deprociation on factory machinery $8,800 Prove the agreement of Work In Process Inventory with job cost sheets pertaining to unfinished work. (Hint: Use a single T-account for Work In Process Inventory.) 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 12/31 Work in process balance LIST OF ACCOUNTS

Explanation / Answer

(ALL VAULES IN $)

Job no.

Amt

7640

85580

7641

55660

Beginning inventory

141240

Job no.

Amt

7640

33000

7641

47300

7642

63800

Total material cost

144100

Job no.

Amt

7640

39600

7641

52800

7642

60500

Total material cost

152900

Job no.

Amt

7640

47520

7641

63360

7642

72600

Total material cost

183480

Particular

Amt

Amt

Beginning balance

7640

85580

7641

55660

141240

Material cost

7640

33000

7641

47300

80300

Labour cost

7640

39600

7641

52800

92400

Manufacturing overhead cost

7640

47520

7641

63360

110880

Total cost of completed job

424820

Date

Particular

Amt

Particular

Amt

1-jan

Beginning balance

141240

Completed job

424820

Direct material

144100

Direct labour

152900

Manufacturing overhead

183480

Closing Balance

196900

621720

621720

2)           

Actual overhead

Amt

Incurred on account

132000

Indirect material

15400

Indirect labour

19800

Depreciation

8800

Total

176000

Applied overhead cost

Job 7640

47520

Job 7641

63360

Job 7642

72600

Total

183400

Actual overhead               =             176000

Applied overhead cost =             183400

                                                =             (7400)

Adjusting entry

Manufacturing overhead                                                             Dr.          7400

                To cost of goods sold                                                      Cr.                          7400

3)            Calculation of gross profit                                          

Sales

583000

Cost of goods sold

Add: Job 7640

95700

        Job 7641

101200

         Job 7642

216800

413700

Less: overapplied overhead

7400

406300

Gross profit

176700

Job no.

Amt

7640

85580

7641

55660

Beginning inventory

141240