For the year ended Dec 31st , 2012 the job cost cost sheet of Guo company contained the following data.

Job Number Direct Materials Direct Labor Manufacturing overhead Total costs

7650 Balance 1/1 18000 20000 25000 63000

Current year's cost 32000 36000 45000 113000

7651 Balance 1/1 12000 16000 20000 48000

Current year's cost 30000 400000 50000 120000

7652 Current year's cost 45000 68000 5000 198000

1. Rawmaterialsinventorytotaled$20,000onJanuary1.Duringtheyear,$100,000ofrawmaterialswere

purchasedonaccount.

2.FinishedgoodsonJanuary1consistedofJobNo.7648for$93,000andJobNo.7649for$62,000.

3. JobNo.7650andJobNo.7651werecompletedduringtheyear.

4. JobNos.7648,7649,and7650weresoldonaccountfor$490,000.

5.Manufacturingoverheadincurredonaccounttotaled$135,000.

6.Othermanufacturingoverheadconsistedofindirectmaterials$12,000,indirectlabor$18,000,anddepreciation

onfactorymachinery$19,500.

Instructions

(a) ProvetheagreementofWorkinProcessInventorywithjobcostsheetspertainingtounfinishedwork.(

Hint:Usea singleTaccountforWorkinProcessInventory.)Calculateeachofthefollowing,thenposteachtotheTaccount:

(1)beginningbalance,(2)directmaterials,(3)directlabor,(4)manufacturingoverhead,and(5)completedjobs.

(b)Preparetheadjustingentryformanufacturingoverhead,assumingthebalanceisallocatedentirelytocostofgoodssold

(c)Determinethegrossprofittobereportedfor2012