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For the end of the current year, the job cost sheets of Ying Chen Company contained the following data: Job Direct Direct Manufacturing Total Number
For the end of the current year, the job cost sheets of Ying Chen Company contained the following data:
Job Direct Direct Manufacturing Total
Number Explanation Materials Labor Overhead Costs
Balance $ $ $ $
Current years costs
Balance
Current years costs
Current years costs
Other data:
Raw materials inventory totaled $ on January st During the year, $ of raw materials was purchased on account.
Finished goods on January consisted of Job No for $ and Job No for $
Job No and Job No were completed during the year.
Job No and were sold on account for $
Manufacturing overhead incurred on account totaled $
Other manufacturing overhead consisted of indirect materials $ indirect labor $ and depreciation on factory machinery $
Instructions:
a Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Hint: Use a single T account for WIP Inventory. Calculate each of the following, then post each to the T account: beginning balance, direct materials, direct labor, manufacturing overhead, and 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 the current year.
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