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-   -   What are the amounts for direct materials and labor, and manufacturing overhead? (https://www.askmehelpdesk.com/showthread.php?t=565820)

  • Mar 27, 2011, 04:31 PM
    hollynicole
    What are the amounts for direct materials and labor, and manufacturing overhead?
    For the year ended December 31, 2010, the job cost sheets of DeVoe 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 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 48,000 55,000 66,000 169,000


    Other data:

    Raw materials inventory totaled $15,000 on January 1. During the year, $140,000 of raw materials were purchased on account.

    Finished goods on January 1 consisted of Job No. 7638 for $87,000 and Job No. 7639 for $92,000.

    Job No. 7640 and Job No. 7641 were completed during the year.

    Job Nos. 7638, 7639, and 7641 were sold on account for $530,000.

    Manufacturing overhead incurred on account totaled $120,000.

    Other manufacturing overhead consisted of indirect materials $14,000, indirect labor $20,000, and depreciation on factory machinery $8,000.








    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 128400 Completed Work 386200
    Direct materials
    Direct labor
    Manufacturing overhead
    12/31 Balance


    Work in process balance $

    Unfinished job No. 7642 $ 169000










    Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold.
    Account/Description Debit Credit
    Manufacturing overhead
    Cost of goods sold










    Determine the gross profit to be reported for 2010. (List amounts from largest to smallest e.g. 10, 5, 3, 2.)
    Sales $ 530000
    Cost of goods sold
    Add: Job 7641 $ 199200
    Job 7639 92000
    Job 7638 87000

    378200
    Less: Overapplied overhead


    Gross profit $

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