Exercise 2-2a

Problem 2-2A (Part Level Submission) For the year ended December 31, 2017, the job cost sheets of Cinta Company contained the following data. Job Direct Direct Manufacturing Total Overhead Number Explanation Materials Labor 7640 Balance 1/1 $31,250 $30,000 $36,000 $97,250 Current year's costs 37,500 45,000 54,000 136,500 13,750 22,500 7641 Balance 1/1 27,000 63,250 Current year's costs 53,750 60,000 72,000 185,750 72,500 7642 Current year's costs 68,750 82,500 223,750 Other data: 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 ere 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