Question

7640		Balance 1/1		$31,250		$30,000		$36,000		$97,250
		Current year’s costs		37,500		45,000		54,000		136,500

7641		Balance 1/1		13,750		22,500		27,000		63,250
		Current year’s costs		53,750		60,000		72,000		185,750

7642

Current year’s costs

72,500

68,750

82,500

223,750

1.		Raw materials inventory totaled $18,750 on January 1. During the year, $175,000 of raw materials were purchased on account.
2.		Finished goods on January 1 consisted of Job No. 7638 for $108,750 and Job No. 7639 for $115,000.
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 $662,500.
5.		Manufacturing overhead incurred on account totaled $150,000.
6.		Other manufacturing overhead consisted of indirect materials $17,500, indirect labor $22,500, and depreciation on factory machinery $10,000.

Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Post each to the T-account in the following order: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs.

Answer 1

ANSWER

Work in process inventory
1/1-Beginning balance [97250+63250]	160,500	completed work (cost of job 7640 7641]=[97,250+136,500+63,250+185,750]	482,750
Direct material     [37,500+53,750+72,500]	163,750
Direct labor    [45,000+60,000+68,750]	173,750
Manufacturing overhead   [54000+72,000+82,500]	208,500
31 -Balance	223,750

WIP balance= 223,750

unfinished job -7642---223,750

================

DEAR STUDENT,

IF YOU HAVE ANY QUERY PLEASE ASK ME IN THE COMMENT BOX,I AM HERE TO HELP YOU.PLEASE GIVE ME POSITIVE RATING..

****************THANK YOU****************