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. Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $15,700 5,70 29,800 The following transactions occurred during January (a) Purchased materials on account for $26,800. (b) Issued materials to production totaling $20,000. 90 percent of which was traced to specific jobs and the remainder of which was treated as Indirect materials. (C) Payroll costs totaling $16,900 were recorded as follows: $10.400 for assembly workers 2.600 for factory supervision 1,900 for administrative personnel 2,000 for sales commissions (d) Recorded depreciation: $4,500 for factory machines. $500 for the copler used in the administrative office. (e) Recorded $1,900 of expired Insurance. Forty percent was Insurance on the manufacturing facility, with the remainder classified as an administrative expense. (7) Paid $5.600 in other factory costs in cash. (9) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. in completed all jobs but one; the job cost sheet for the uncompleted Job shows $2.400 for direct materials, $2.300 for direct labor, and $4.600 for applied overhead. 0) Sold jobs costing $51.500. The revenue earned on these jobs was $66.950. Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following 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. 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. 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 Beg Bal fia) Raw Materials Inventory 15,700 26,800 20,000 (b) 42,500 20,000 Beg Bal. (b) Work in Process Inventory 5,700 18,000 9,300(h) 10,400 20,800 End Bal. (9) End. Bal. 45,600 Cost of Goods Sold Beg Bal. th) Finished Goods Inventory 20,8001 9,300 51,500 (0) Beg. Bal. 10 51,500 End. Bal. 21,400 End. Bal 51,500 Manufacturing Overhead 20.800 Beg Bal. (b) c) (d) 2.000 2,600 4,500 780 5.800 Selling. General, and Administrative Expenses Beg Bal (c) 3,900 (d) 500 le) 1,140 (t) End. Bal 5,540 End. Bal. 5,340 Sales Revenue Beg Bal. 68,9500 End. Bal. 68,950 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 Manufacturing Overhead Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold. Adjusted Gross Profit