Question

Question 9

For the year ended December 31, 2020, the job cost sheets of DeVoe Company contained the following data:

Help System Announcements Question 9 For the year ended December 31, 2020, the job cost sheets of Devoe Company contained the following data: Job Direct Direct Manufacturing Total Number Explanation Materials Labour Overhead Costs 7610 Balance 1/1 $25,400 $24,500 $29,100 $79,000 Current year's costs 30,200 35,100 43,400 108,700 7641 Balance 1/1 11,200 18.900 21,600 51,700 Current year's costs 43,300 48,400 58,100 149,800 7642 Current year's costs 49,000 55,200 66,800 171,000 Other data: 1. Raw materials inventory totalled $15,900 on January 1. During the year, 5140,700 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $87,400 and Job No. 7639 for $92,600. 3. Job No. 7640 and Job No. 7641 were completed during the year. 4. Jobs 7638, 7639, and 7541 were sold on account for $530,400. 5. Manufacturing overhead incurred on account totalled $113,000. 6. Other manufacturing overhead consisted of indirect materials $13,100, indirect labour $19,600, and depreciation on factory machinery $8,000. Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Calculate each of the following, then post each to the T account: 1. beginning balance $ 2. direct materials $ 3. direct labour $ 1. manufacturing overhead $ 5. completed jobs $ closing balance $ Work in Process Inventory 1/1 12/31 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. (Credit account titles are automatically Account Titles and Explanation Credit LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Determine the gross profit to be reported for 2020. Gross Profit $

Answer 1

		Job cost sheet
			job 7640	job7641	job 7642
Balance 1/1
Direct materials		25,400	11,200		36,600
Direct labor		24,500	18,900		43,400
Manufacturing overhead	29,100	21,600		50,700
total beginning balance 1/1	79,000	51,700		130,700
Cost added during the year
Direct materials		30,200	43,300	49,000	122,500
Direct labor		35,100	48,400	55,200	138,700
Manufacturing overhead	43,400	58,100	66,800	168,300
Total cost added during the yr	108,700	149,800	171,000	429,500
total cost of jobs		187,700	201,500	171,000	560,200
only job 7642 is uncompleted , its balance is 171000
completed work (job 7640+7641) that is 187700+201500=	389,200
balance in finished goods inventory will equal job 7640

1	Beginning balance		130,700
2	Direct materials		122,500
3	direct labor		138,700
4	manufacturing overhead	168,300
5	completed jobs		389,200
	closing balance		171,000

Account titles and explanations	Debit	Credit
Manufacturing overhead		14,600
Cost of good ssold				14,600
(168,300 applied - 113,000 incurred-13,100 Ind mat-19,600 ind Lab-8,000 dep)

		Work in process inventory
1-Jan	Balance		130,700	Completed work		389,200
	Direct materials		122,500
	Direct labor		138,700
	Manufacturing overhead		168,300
31-Dec	Balance		171,000

Gross profit
Sales					530,400
less cost of goods sold			366,900
Gross profit				163,500
finished goods
beg bal	180,000
WIP	389,200	COGS	381,500
end bal	187,700