Question 11

For the year ended December 31, 2020, 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		$28,750		$27,600		$33,120		$89,470
		Current years costs		34,500		41,400		49,680		125,580
7641		Balance 1/1		12,650		20,700		24,840		58,190
		Current years costs		49,450		55,200		66,240		170,890
7642		Current years costs		66,700		63,250		75,900		205,850

Other data:

1.		Raw materials inventory totaled $17,250 on January 1. During the year, $161,000 of raw materials were purchased on account.
2.		Finished goods on January 1 consisted of Job No. 7638 for $100,050 and Job No. 7639 for $105,800.
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 $609,500.
5.		Manufacturing overhead incurred on account totaled $138,000.
6.		Other manufacturing overhead consisted of indirect materials $16,100, indirect labor $20,700, and depreciation on factory machinery $9,200.

(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.