ABC Company is a painting contractor and uses a job order costing system. On December 1, 2019, the Company purchased 10 gallons of paint at $125 per gallon for inventory. On December 10, the Company signed a contract for a residential painting job for $8,000 (Job 100). The Company used 8 gallons of paint on the job. The painters worked for 90 hours at an hourly rate of $15 per hour. ABC Company estimated annual overhead costs (paintbrushes, rollers, drop paper, etc.) of $500,000 and total direct labor hours of 20,000 hours. The job was completed on December 20 and the customer was billed for $8,000. (Note: T-accounts may be used as an alternative or in addition to journal entries.)

1. Journalize the entry to record the purchase of the paint.

2. Journalize the entries to record (1) the transfer of the paint, (2) the application of direct labor, and (3) the application of company overhead to job 100.

3. Journalize the completion of Job 100.

4. Journalize the billing and cost recognition of Job 100

5. How much was the gross profit on Job 100?