Business decision case B Quality Painters, Inc., uses a job cost system. As of January 1, its records showed the following inventory balances: Materials 7,000 Work in process $ 50,000 Finished goods 0 The work in process inventory consisted of two jobs: Direct Direct Job No. materials labor Overhead Total 100-Community housing $9,000 12,000 4,000 25,000 25,000 Totals 19000 21000 10000 0000 101- Regal apartments 10,000 9.000 6.000 Here are data for the company in January: a. Materials purchased, $90,000. b. Direct labor costs: direct labor to Job No. 100, $20,000; to Job No. 101, $48,000; and to Job No. 102 (a new job), $50,000. Indirect labor, $10,000. Direct materials used: direct materials for Job No. 100, $15,600; for Job No. 101, $28,800; and for Job No. 102, $48,000. Supplies (indirect materials) used amounted to $4,000. Overhead is assigned to jobs at $5 per labor-hour, with 1,000 labor-hours to Job 100 and 2,000 labor-hours each to Jobs 101 and 102. c. d. e. f g. All three jobs were completed in January h. Sales revenues for January were $350,000 for the three jobs. i. Actual overhead costs incurred other than indirect labor and indirect materials were depreciation, $6,000, and utilities, fuel, and miscellaneous, $5,000. Required: 1. 2. Prepare a job cost sheet for each job. Prepare journal entries for the January activity (labeled a to i above) assuming ll purchases and sales were on credit Prepare an income statement for January assuming selling and administrative expenses for January were $50,000 3. 4. Is the company profitable (that is, showing net income greater than zero)? What suggestions can you make for management to help increase the company's net income