For the year ended December 31, 2017, the
Other data:
1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,000 of raw materials were purchased on account.
2. Finished goods on January 1 consisted of Job No. 7638 for $87,000 and Job No. 7639 for $92,000.
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 $530,000.
5. Manufacturing
6. Other manufacturing overhead consisted of indirect materials $14,000, indirect labor $18,000. and
Instructions
(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.
(b) Prepare the
(c) Determine the gross profit to be reported for 2017.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Managerial Accounting: Tools For Business Decision Making, Seventh Edition Wileyplus Card
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Intermediate Accounting (2nd Edition)
Financial Accounting, Student Value Edition (4th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Managerial Accounting (4th Edition)
Horngren's Accounting (11th Edition)
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education