For the year ended December 31, 2022, the job cost sheets of DeVoe Company contained the following data: 

Other data: 

1. Raw materials inventory totalled $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. Jobs 7638, 7639, and 7641 were sold on account for $530,000 in total.

5. Manufacturing overhead incurred on account totalled $120,000.

6. Incurred depreciation on factory machinery $8,000.

7. Assigned indirect materials of $14,000 and indirect labour of $18,000.

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. Prepare a partial income statement through gross profit for 2022.

Transcribed Image Text:

Job Number 7640 7641 7642 Explanation Balance 1/1 Current year's costs Balance 1/1 Current year's costs Current year's costs Direct Materials $25,000 30,000 11,000 43,000 58,000 Direct Labour $24,000 36,000 18,000 48,000 55,000 Manufacturing Overhead $28,800 43,200 21,600 57,600 66,000 Total Costs $ 77,800 109,200 50,600 148,600 179,000