For the year ended December 31, 2017, the job cost sheets of Cinta Company contained the following data.

Job Number		Explanation		Direct Materials		Direct Labor		Manufacturing Overhead		Total Costs
7640		Balance 1/1		$28,000		$26,880		$32,256		$87,136
		Current year’s costs		33,600		40,320		48,384		122,304
7641		Balance 1/1		12,320		20,160		24,192		56,672
		Current year’s costs		48,160		53,760		64,512		166,432
7642		Current year’s costs		64,960		61,600		73,920		200,480

Other data:

1.		Raw materials inventory totaled $16,800 on January 1. During the year, $156,800 of raw materials were purchased on account.
2.		Finished goods on January 1 consisted of Job No. 7638 for $97,440 and Job No. 7639 for $103,040.
3.		Job No. 7640 and Job No. 7641 were completed during the year.
4.		Job Nos. 7638, 7639, and 7641 were sold on account for $593,600.
5.		Manufacturing overhead incurred on account totaled $134,400.
6.		Other manufacturing overhead consisted of indirect materials $15,680, indirect labor $20,160, and depreciation on factory machinery $8,960.

A- Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. (Hint: Use a single T-account for Work in Process Inventory.) 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.

Work in process balance:

Unfinished job:

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 2017.