Chapter 02 Homework Saved Help Save & Exit Submit Check my work 6 Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2018 follow: 10 points Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $ 16,000 5,100 21,000 Skipped eBook Print References The following transactions occurred during January: (a) Purchased materials on account for $27,700. (b) Issued materials to production totaling $22,000, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials. (c) Payroll costs totaling $20,000 were recorded as follows: $11,200 for assembly workers 2,700 for factory supervision 2,900 for administrative personnel (d) Recorded depreciation: $4,800 for factory machines, $700 for the copier used in the administrative office. (e) Recorded $1,100 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. (f) Paid $5,500 in other factory costs in cash. (9) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. (n) Completed all jobs but one; the job cost sheet for the uncompleted job shows $2,400 for direct materials, $2,500 for direct labor, and $5,000 for applied overhead. (i) Sold jobs costing $50,200. The revenue earned on these jobs was $65,260. Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: Chapter 02 Homework A Saved Help Save & Exit Submit Check my work 6 a. Raw Materials Inventory. b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufacturing Overhead. f. Selling, General, and Administrative Expenses. g. Sales Revenue. 10 points Skipped 2. Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. 3. Determine the amount of over- or underapplied overhead. 4. Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold. eBook Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: (Post all amounts separately. Do not combine/add any dollar amounts when posting to the T-accounts.) a. Raw Materials Inventory. b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufacturing Overhead. f. Selling, General, and Administrative Expenses. g. Sales Revenue. Show less Chapter 02 Homework Saved Help Save & Exit Submit Check my work 6 Raw Materials Inventory 16,000 Work in Process Inventory 5,100 Beg. Bal. Beg. Bal. 10 points End. Bal. 16.000 Skipped End. Bal. 5,100 eBook Cost of Goods Sold Finished Goods Inventory 21,000 Print Beg. Bal. Beg. Bal. References End. Bal. 21,000 End. Bal. Manufacturing Overhead Selling, General, and Administrative Expenses Beg. Bal. Beg. Bal. End. Bal. End. Bal. References References Sales Revenue Beg. Bal. End. Bal. 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. Unadjusted Gross Profit Complete this question by entering your answers in the tabs below. Required 4 Required 1 Required 2 Required 3 Required 4 Determine the amount of over- or underapplied overhead. Manufacturing Overhead Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold. Adjusted Gross Profit