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

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 overhead incurred on account totaled $120,000.
6. Other manufacturing overhead consisted of indirect materials $14,000, indirect labour $20,000, and depreciation on factory machinery $8,000.
Instructions
(a) Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. 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 labour
4. Manufacturing overhead
5. Completed jobs
(b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold.
(c) Determine the gross profit to be reported for 2012.

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Direct Manufacturing Total Overhead $28,800 43,200 21,600 57,600 66,000 Direct Job NumberExlanation Materials Labour $24,000 36,000 18,000 48,000 55,000 Costs 77,800 109,200 50,600 148,600 169,000 Balance 1/1 Current year's costs 7640 $25,000 30,000 11,000 Current year's costs 43,000 Current year's costs48,000 764 Balance 1/1 7642