For the year ended December 31, 2012, the job cost sheets of Mazzone Company contained the following data:

Other data:
1. Raw materials inventory totaled $20,000 on January 1. During the year, $100,000 of raw materials were purchased on account.
2. Finished goods on January 1 consisted of Job No. 7648 for $93,000 and Job No. 7649 for $62,000.
3. Job No. 7650 and Job No. 7651 were completed during the year.
4. Job Nos. 7648, 7649, and 7650 were sold on account for $490,000.
5. Manufacturing overhead incurred on account totaled $125,000.
6. Other manufacturing overhead consisted of indirect materials of $12,000, indirect labour of $18,000, and depreciation on factory machinery of $19,500.
Instructions
(a) 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
4. Manufacturing overhead
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 2012.

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Job 7650 7651 7652 Direct Manufacturing Total Direct Materials $17,000 ,000 12,000 30,000 43,000 NumberExplanation Labour $20,000 Balance 1/1 Current year's costs Balance 1/1 Current year's costs Current year's costs Overhead $25,000 45,000 20,000 50,000 80,000 Costs 62,000 113,000 48,000 120,000 187,000 32 36,000 16,000 40,000 64,000