roblem 20-2A

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		$30,250		$29,040		$34,848		$94,138
		Current years costs		36,300		43,560		52,272		132,132
7641		Balance 1/1		13,310		21,780		26,136		61,226
		Current years costs		52,030		58,080		69,696		179,806
7642		Current years costs		70,180		66,550		79,860		216,590

Other data:

1.		Raw materials inventory totaled $18,150 on January 1. During the year, $169,400 of raw materials were purchased on account.
2.		Finished goods on January 1 consisted of Job No. 7638 for $105,270 and Job No. 7639 for $111,320.
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 $641,300.
5.		Manufacturing overhead incurred on account totaled $145,200.
6.		Other manufacturing overhead consisted of indirect materials $16,940, indirect labor $21,780, and depreciation on factory machinery $9,680.

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

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

Determine the gross profit to be reported for 2017?