For the year ended December 31, 2017, the job cost sheets of Cinta Company contained the following data.
|
Job
Number
|
Explanation
|
Direct
Materials
|
Direct
Labor
|
Manufacturing
Overhead
|
Total
Costs
|
|
|
|
|
|
|
|
|
7640
|
Balance 1/1
|
$31,250
|
$30,000
|
$36,000
|
$97,250
|
|
|
Current year's costs
|
37,500
|
45,000
|
54,000
|
136,500
|
|
7641
|
Balance 1/1
|
13,750
|
22,500
|
27,000
|
63,250
|
|
|
Current year's costs
|
53,750
|
60,000
|
72,000
|
185,750
|
|
7642
|
Current year's costs
|
72,500
|
68,750
|
82,500
|
223,750
|
Other data:
1. Raw materials inventory totaled $18,750 on January 1. During the year, $175,000 of raw materials were purchased on account.
2. Finished goods on January 1 consisted of Job No. 7638 for $108,750 and Job No. 7639 for $115,000.
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 $662,500.
5. Manufacturing overhead incurred on account totaled $150,000.
6. Other manufacturing overhead consisted of indirect materials $17,500, indirect labor $22,500, and depreciation on factory machinery $10,000.
(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.) 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.