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 2020.

Problem 20-02A a-c (Part Level Submission) For the year ended December 31, 2020, the job cost sheets of Cullumber Company contained the following data. Job Direct Manufacturing Total Direct Costs Number Explanation Materials Labor Overhead Balance 1/1 $31,250 7640 $30,000 $36,000 $97,250 45,000 Current year's costs 37,500 54,000 136,500 7641 Balance 1/1 13,750 22,500 27,000 63,250 60,000 Current year's costs 53,750 72,000 185,750 7642 Current year's costs 68,750 223,750 72,500 82,500 Other data: 1. Raw materials inventory totaled $18,750 on January 1. During the year, $175,000 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $108,750 and Job No. 7639 for $115,000. Job No. 7640 and Job No. 7641 were completed during the year. 3. 4. Job Nos. 7638, 7639, and 7641 were sold on account for $662,500. 5. Manufacturing overhead incurred on account totaled $150,000. 6. Other manufacturing overhead consisted of indirect materials $17,500, indirect labor $22,500, and depreciation on factory machinery $10,000 (a) Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Post each to the T-account in the following order: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs