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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 2018 follow: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $16,300 5,800 21,300 The following transactions occurred during January: (a) Purchased materials on account for $26,000. (b) Issued materials to production totaling $20,100, 90 percent of which was traced to specific jobs and the remainder of which was treated as Indirect materials (c) Payroll costs totaling $16,300 were recorded as follows: $10,400 for assembly workers 2,200 for factory supervision 1,300 for administrative personnel 2.400 for sales commissions (d) Recorded depreciation: $5,400 for factory machines, $1,100 for the copier used in the administrative office, le) Recorded $1,200 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. Paid $6,300 in other factory costs in cash. (9) Applied manufacturing overhead at a rate of 200 percent of direct lobor cost. m Completed all jobs but one; the job cost sheet for the uncompleted job shows $2,300 for direct materials. $2,200 for direct labor, and $4,400 for applied overhead. Sold jobs costing $51,400. The revenue earned on these Jobs was $66,820, 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 "p Sold jobs costing $51,400. The revenue earned on these jobs was $66,820. 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

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