Homework Chapter 2

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For the year ended December 31, 2022, 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		$25,000		$24,000		$28,800		$77,800
		Current years costs		30,000		36,000		43,200		109,200
7641		Balance 1/1		11,000		18,000		21,600		50,600
		Current years costs		43,000		48,000		57,600		148,600
7642		Current years costs		58,000		55,000		66,000		179,000

Other data:

1.		Raw materials inventory totaled $15,000 on January 1. During the year, $140,000 of raw materials were purchased on account.
2.		Finished goods on January 1 consisted of Job No. 7638 for $87,000 and Job No. 7639 for $92,000.
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 $530,000.
5.		Manufacturing overhead incurred on account totaled $120,000.
6.		Incurred depreciation on factory machinery $8,000.
7.		Assigned indirect materials of $14,000 and indirect labor of $18,000.

(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.

Work in Process Inventory
1/1	BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work		BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work
	BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work		BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work
	BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work		BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work
	BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work		BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work
12/31	BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work		BalanceDirect MaterialsDirect LaborManufacturing OverheadCompleted Work

Work in process balance		$
Unfinished job No. 7638No. 7639No. 7640No. 7641No. 7642		$

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(b)

Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

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(c)

Prepare an income statement through gross profit for 2022.

CINTA COMPANY Income Statement (partial) For the Month Ended December 31, 2022For the Year Ended December 31, 2022December 31, 2022
Cost of Goods ManufacturedCost of Goods SoldFinished Goods, December 31Gross ProfitSales RevenueDirect Materials UsedDirect LaborOverapplied OverheadUnderapplied OverheadJob 7638Job 7639Job 7641				$
Cost of Goods ManufacturedCost of Goods SoldFinished Goods, December 31Gross ProfitSales RevenueDirect Materials UsedDirect LaborOverapplied OverheadUnderapplied OverheadJob 7638Job 7639Job 7641
AddLess :
Cost of Goods ManufacturedCost of Goods SoldFinished Goods, December 31Gross ProfitSales RevenueDirect Materials UsedDirect LaborOverapplied OverheadUnderapplied OverheadJob 7638Job 7639Job 7641
AddLess : Cost of Goods ManufacturedCost of Goods SoldFinished Goods, December 31Gross ProfitSales RevenueDirect Materials UsedDirect LaborOverapplied OverheadUnderapplied OverheadJob 7638Job 7639Job 7641
Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods, May 1Finished Goods, May 31Gross ProfitSales RevenueWork in Process, May 1Work in Process, May 31Raw Materials, May 1Raw Materials, May 31Total Work in ProcessManufacturing Overhead AppliedTotal Manufacturing CostsDirect LaborDirect Materials Used				$

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