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$20,000Work in Process Inventory15,000Finished Goods Inventory32,000

The following transactions occurred during January:

(a)Purchased materials on account for $26,000.

(b)Issued materials to production totaling $40,000, 80 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials.

(c)Payroll costs totaling $69,700 were recorded as follows:

$18,000 for assembly workers

5,200 for factory supervision

31,000 for administrative personnel

15,500 for sales commissions

(d)Recorded depreciation: $8,500 for factory machines, $2,400 for the copier used in the administrative office.

(e)Recorded $4,000 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense.

(f)Paid $7,800 in other factory costs in cash.

(g)Applied manufacturing overhead at a rate of 300 percent of direct labor cost.

(h)Completed all jobs but one; the job cost sheet for the uncompleted job shows $10,000 for direct materials, $3,000 for direct labor, and $9,000 for applied overhead.

(i)Sold jobs costing $70,000. The revenue earned on these jobs was $91,000.

Required:

1.Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts:

1. Raw Materials Inventory.
2. Work in Process Inventory.
3. Finished Goods Inventory.
4. Cost ofGoods Sold.
5. ManufacturingOverhead.
6. Selling, General, andAdministrative Expenses.
7. Sales Revenue.