For the year ended December 31, 2012, the job cost sheets of Heimer - 10413

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AP20-2A


 

For the year ended December 31, 2012, the job cost sheets of Heimer Company contained the following data.

 

Job Number

Explanation

Direct Materials

Direct Labor

Manufacturing Overhead

Total
Costs

7640

Balance 1/1

$25,057

$24,363

$27,641

$77,061

 

Current year's costs

  29,719

  36,264

  43,629

109,612

7641

Balance 1/1

  11,181

  17,530

  21,262

  49,973

 

Current year's costs

  46,106

  47,640

  57,836

151,582

7642

Current year's costs

  47,517

  55,159

  66,327

169,003

 

Other data:

 

  1. Raw materials inventory totaled $15,242 on January 1. During the year, $140,420 of raw materials were purchased on account.
  2. Finished goods on January 1 consisted of Job No. 7638 for $86,508 and Job No. 7639 for $91,603.
  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 $529,076.
  5. Manufacturing overhead incurred on account totaled $119,048.
  6. Other manufacturing overhead consisted of indirect materials $13,226, indirect labor $19,715, and depreciation on factory machinery $7,865.

 

 


Your answer is correct.

 

 

     

 

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.

 

Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold.

 

 

 

 

Determine the gross profit to be reported for 2012. (List amounts from largest to smallest e.g. 10, 5, 3, 2.)

 

 

 

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