Job
Number
Explanation
Direct
Materials
Direct
Labor
Manufacturing
Overhead
Total
Costs
7640 Balance 1/1 $32,250 $30,960 $37,152 $100,362
Current year’s costs 38,700 46,440 55,728 140,868
7641 Balance 1/1 14,190 23,220 27,864 65,274
Current year’s costs 55,470 61,920 74,304 191,694
7642 Current year’s costs 74,820 70,950 85,140 230,910
Other data:
1. Raw materials inventory totaled $19,350 on January 1. During the year, $180,600 of raw materials were purchased on account.
2. Finished goods on January 1 consisted of Job No. 7638 for $112,230 and Job No. 7639 for $118,680.
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 $683,700.
5. Manufacturing overhead incurred on account totaled $154,800.
6. Other manufacturing overhead consisted of indirect materials $18,060, indirect labor $23,220, and depreciation on factory machinery $10,320.
(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 following, then post each to the T-account: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs.
Work in Process Inventory
1/1 Balance
Direct materials
Direct labor
Manufacturing overhead
12/31 Balance
Completed work
Work in process balance
$
Unfinished job
$