ABC co. is a furniture manufacturing company specializing in office furniture. On June 17, 2020, XYZ Company placed an order with ABC co. for a large custom made conference table at total price $ 73000. XYZ co. wants the shipment before July 10, 2020. Selling & Administrative expense is 6% of the sales.

The following information relates to job no. 85:

1. On July 3,2020 ABC co. purchase material with $ 22,000 (Not all material will be used for job 85 and the payment at a later date

Number of Material	Price/Material
60	$600/sheets mahogany wood
340	$4/Gallons stain
35	$10/cases of glue
15	$70/ nails

2- On July 3 the production department recursions the fowling material and began work on job 85. Direct Material for Job 85: 14 sheet of mahogany at $500 and indirect materials were as follows: 20 Stain gallons at $5, 2 Glue case at $20, and 2 Nails case at $40

3. The production department incurred the following payroll cost for the week ended July 7, 2020 (July 3.2020 July 7, 2020). Direct labor for Job 73 is $600, Direct labor for Job 85 is $4560, indirect labor is $2000

4. The production department incurred other factory overhead costs amounting ended July 7, 2020 as following:Accumulated Dep. Machinery is $440, Accumulated Dep. Factory is $580, Utilize payable is $980, and Miscellaneous payable is $2000.

5. Factory overhead was applied at a rate of 75% of direct labor cost of Job 85.

Required:

1. Journal entries and T-Accounts for all the transactions
2. Prepare the income statement based on your findings