P2.2 (LO 1, 2, 3, 4, 5), AN For the year ended December 31, 2020, the job cost sheets of Cinta NV con- tained the following data. Job Number 7640 Explanation Balance 1/1 Current year's costs Balance 1/1 Current year's costs Current year's costs Direct Materials 25,000 30,000 Direct Labor 24,000 36,000 18,000 48,000 55,000 Manufacturing Overhead 28,800 43,200 21,600 57,600 66,000 Total Costs 77,800 109,200 50,600 148,600 179,000 7641 11,000 43,000 58,000 7642 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 labor 18,000, 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. (Hint: Use a single T-account for Work in Process Inventory.) Calculate each of the follow- ing, 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 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 2020