P2.2 (LC 1, 2, 3, 4, 5), AN For the year ended December 31, 2020, the job cost sheets of Cinta NV con- tained the following data. Job Direct Direct Manufacturing Total Number Explanation Materials Labor Overhead Costs 7640 Balance 1/1 25,000 24,000 28,800 77,800 Current year's costs 30,000 36,000 43,200 109,200 7641 Balance 1/1 11,000 18,000 21,600 50,600 Current year's costs 43,000 48,000 57,600 148,600 7642 Current year's 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. Other manufacturing overhead consisted of indirect materials 14,000, indirect labor 18,000, and depreciation on factory machinery 8,000 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 Work in Process Inventory) Calculate each of the follow- ing, then post each to the T-account: (1) beginning balance. (2) direct materials. (3) direct labor, (4) manufacturing overhead, and (5) 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 2020