For the year ended december 31, 2014, the job cost sheets of cinta

For the year ended December 31, 2014, the job cost sheets of Cinta Company contained the following data.

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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

$