# 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.

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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