Please find my question in the pictures attached above. P3.324 (LO 2, 3, 4, 5) F
ID: 2408150 • Letter: P
Question
Please find my question in the pictures attached above.
P3.324 (LO 2, 3, 4, 5) For the year ended December 31, 2020, the job cost sheets of DeVoe Company Prepare eniries in a job order job cost sheets oft contained the following data: cust system and a partial income saiemen DirectDirect Manufacturing Total Job Number 7640 7641 7642 Current year's costs 58,000 55,00066,000179,000 Explanation Materials LabourOverhead Costs Balance 1/1 $25,000 $24,000 $28,800 77,80 Current year's costs 30,000 36,000 Balance 1/1 Current year's costs 43,000 48,00x0 43.200 21,600 57.600 148,600 109.200 50,600 11,000 18,000 Other data: During the year, S? 40,000 of raw materials Raw materials inventory totalled $15,000 on Januaryl were purchased on account. 1. hed goods on January I 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. Jobs 7638, 7639, and 7641 were sold on account for $530.000 in totalExplanation / Answer
part (a) Work In process Inventory particulars Amount particulars Amount Balance (77800+50600) 128400 Direct materials (30000+43000+58000) 131000 Completed Work (77800+109200+50600+148600) 386200 Direct labour (36000+48000+55000) 139000 Ending balance 179000 manufacturing Over head 166800 Total 565200 Total 565200 Actual over head Incurred incurred on account 120000 indirect materials 14000 indirect labour 18000 Depreciation 8000 160000 Applied over head costs Job 7640 43200 Job 7641 57600 Job 7642 66000 166800 manufacturing over head Over applied =$166800-160000 =$6800 part (b) Adjusting entry for manufacturing over head Debit Credit manufactuing Over head A/c $6800 To Cost of goods sold A/c $6800 (being manufacturing over head over applied has been adjusted) part (c ) gross profit to be reported for 2020 Amount in $ Amount in $ Sales 530000 less: Cost of goods sold Job 7638 87000 Job 7639 92000 Job 7641 (50600+148600) 199200 378200 Less: over head over applied -6800 371400 -371400 Gross profit 158600