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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

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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 2016 folow Raw Materials Inventory Work in Poc Finished Goods Inventory $15,800 6.400 20,000 Inventory The folowing transactions occured during January (a) Purchased materials on account for $26.800 () Issued materials to production totaling $20,200, 90 percent of which was traced to specifc jobs and the remainder of which was treated as indirect materials (c) Payroll costs totaling $19,800 were recorded as follows $10,500 for assembly workers 2,900 for factory supervision 3,000 for administrative personnel 3.400 for sales commissions (d) Recorded depreciation: $5,500 for machines, $1,400 for the copier used in the administrative office (e) Recorded $1,300 of expired insurance. Forty percent was insurance on the manufacturing faclity, with the remainder classied as an administrative expense Paid $5,500 in other factory costs in cash. (g) Applied manufacturing overhead at a rate of 200 percent of direct labor cost (n) Completed al jobs but one; the job cost sheet for this job shows $2,500 for direct materialis, $2,300 for direct labor, and $4,600 for applied overhead Sold jobs costing $51,500. The revenue eamed on these jobs was Se6,950 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the folowing 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 Invertory c Finished Goods Inventory d. Cost of Goods Sold e. Seling, General, and Administrative Expenses t Sales Revenue. gOther accounts (Cash, Payables, etc.). Raw Materials Inventory Work in Process Inventory Beg Bal Beg Bal End. Bal. End. Bal Finished Goods Inventory Cost of Goods Sold Beg Bal Beg. Bal End. Bal End Bat Manufacturing Overhead Selling, General, and Administrative Expenses Beg Bal Beg. Ba End Ba Finished Gcods Inventory Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Manufacturing Overhead Selling, General, and Administrative Expenses Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Sales Revenue Other Accounts Beg. Bal. (Cash, Payables, etc.) Beg. Bal. End. Bal. End. Bal 2. 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 3. Determine the amount of over- or underapplied overhead. Manufacturing Overhead 4. Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold Adjusted Gross Profit

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