Reference no: EM132485489
Problem - For the year ended Decenter 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
|
$25,500
|
$24,480
|
$29,376
|
$79,356
|
|
|
Current year's costs
|
30,600
|
36,720
|
44,064
|
111,384
|
|
7641
|
Balance 1/1
|
11,220
|
18,360
|
22,032
|
51,612
|
|
|
Current year's costs
|
43,860
|
48,960
|
58,752
|
151,572
|
|
7642
|
Current year's costs
|
59,160
|
56,100
|
67,320
|
182,580
|
Other data -
1. Raw materials inventory totaled $15,300 on January 1. During the year, $142,800 of raw materials were purchased on account.
2. Finished goods on January 1 consisted of Job No. 7638 for $88,740 and Job No. 7639 for $93,840.
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 $540,600.
5. Manufacturing overhead incurred on account totaled $122,400.
6. Other manufacturing overhead consisted of indirect materials $14,280, indirect labor $18,360, and depreciation on factory machinery $8,160.
Required -
1. Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold.
2. Determine the gross profit to be reported for 2017.