Weygandt, Accounting Principles, 12e Problem 20-2A For the year ended December 3

Question

Weygandt, Accounting Principles, 12e Problem 20-2A For the year ended December 31, 2017, the job cost sheets of Cinta Company contained the following data Direct Direct Manufacturing Total Number Explanation $28,250 $27,120 33,900 40,680 12,430 20,340 48,590 54,240 65,540 62,150 48,816 123,396 24,408 57,178 Balance 1/1 Current year's costs 7641 7642 Current year's costs 74,580 202,270 . Raw materials inventory totaled $16,950 on January 1. During the year, $158,200 of rw materials were purchased on account. 2 Finished goods on January 1 consisted of lob No. 7638 for $98,310 and Job No. 7639 for $103,960 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 $598,900 overhead incurred on account totaled $135,60o. (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs e. oe

Explanation / Answer

Req 1 WORK IN PROCESS INVENTORY Balance 95,092 Finished Goods Inv 386,406 Raw material Inv. 148,030 (Job 7640+7641) Direct Labour 157,070 OH Applied 188,484 Balance Job no. 7642 202,270 Req 2: Under-overapplied Overheads: Overheads incurred: OH incurred 135600 Indirect material 15820 Indirect labour 20340 Depreciation 9040 Total OH incurred 180800 Overheads Applied 188484 Over-applied OH 7684 Journal entry: Manufacturing Overheads Dr. 7684        Cost of Goods sold 7684 Req 3: GROSS PROFIT: sales revenue(7638, 7639 and 7641) 598900 Less: Cost of Goods sold Job No.7638 98310 Job No. 7639 103960 Job No. 7641 (57178+167918) 225096 427366 GROSS PROFIT: 171534

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