Problem - 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 |
$26,000 |
$24,960 |
$29,952 |
$80,912 |
| Current year's costs |
31,200 |
37,440 |
44,928 |
113,568 |
| 7641 |
Balance 1/1 |
11,440 |
18,720 |
22,464 |
52,624 |
| Current year's costs |
44,720 |
49,920 |
59,904 |
154,544 |
| 7642 |
Current year's costs |
60,320 |
57,200 |
68,640 |
186,160 |
Other data:
1. Raw materials inventory totaled $15,600 on January 1. During the year, $145,600 of raw materials were purchased on account.
2. Finished goods on January 1 consisted of Job No. 7638 for $90,480 and Job No. 7639 for $95,680.
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 $551,200.
5. Manufacturing overhead incurred on account totaled $124,800.
6. Other manufacturing overhead consisted of indirect materials $14,560, indirect labor $18,720, and depreciation on factory machinery $8,320.