(a) 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.) Cal- culate each of the following, then post each to the T-account: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs. (b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. (c) Determine the gross profit to be reported for 2014.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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For the year ended December 31, 2014, the job cost sheets of Cinta Company
contained the following data.
Job
Number
Manufacturing
Overhead
Direct
Direct
Total
Explanation
Materials
Labor
$25,000
30,000
11,000
43,000
58,000
$24,000
36,000
18,000
48,000
55,000
$28,800
43,200
21,600
57,600
Costs
$ 77,800
109,200
50,600
148,600
179,000
7640
Balance 1/1
Current year's costs
Balance 1/1
Current year's costs
Current year's costs
7641
7642
66,000
Other data:
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.
Transcribed Image Text:For the year ended December 31, 2014, the job cost sheets of Cinta Company contained the following data. Job Number Manufacturing Overhead Direct Direct Total Explanation Materials Labor $25,000 30,000 11,000 43,000 58,000 $24,000 36,000 18,000 48,000 55,000 $28,800 43,200 21,600 57,600 Costs $ 77,800 109,200 50,600 148,600 179,000 7640 Balance 1/1 Current year's costs Balance 1/1 Current year's costs Current year's costs 7641 7642 66,000 Other data: 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.
(a) 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.) Cal-
culate cach of the following, then post each to the T-account: (1) beginning balance,
(2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed
jobs.
(b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is
allocated entirely to Cost of Goods Sold.
(c) Determine the gross profit to be reported for 2014.
Transcribed Image Text: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. (a) 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.) Cal- culate cach of the following, then post each to the T-account: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs. (b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. (c) Determine the gross profit to be reported for 2014.
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