Payne Press Company is engaged in the manufacture of large-size presses under specific contracts and in accordance with customers' specifications. Customers are required to advance 25 percent of the contract price. The company records sales on a shipment basis and accumulates costs by job orders. The normal profit margin over the past few years has been approximately 5 percent of sales, after provision for selling and administrative expenses of about 10 percent of sales. Inventories are valued at the lower of cost or market.

Among the jobs you are reviewing in the course of your annual audit of the company's December 31 financial statements is Job No. 2357, calling for delivery of a three-color press at a firm contract price of \(\$ 50,000\). Costs accumulated for the job at the year-end aggregated \(\$ 30,250\). The company's engineers estimated that the job was approximately 55 percent complete at December 31. Your audit procedures have been as follows:

1. Examined all contracts, noting pertinent provisions.

2. Observed physical inventory of jobs in process and reconciled details to job order accounts.

3. Tested controls over input of labor, material, and overhead charges into the various jobs to determine that such charges were authentic and had been posted correctly.

4. Confirmed customers' advances at year-end.

5. Reconciled goods in process job ledger with control account.

Required: 

a. State what additional audit procedures, if any, you would follow and explain the purpose of the procedures.

b. Indicate the manner and the amount at which you would include Job No. 2357 in the balance sheet.