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 the current year follow:

Raw Materials Inventory $$16,300$

Work $in$ Process Inventory $5,500$

Finished Goods Inventory $20,400$

The following transactions occurred during January:

a$.$ Purchased materials on account for $$27,800.$

b$.$ Issued materials to production totaling $$20,700,90$ percent of which was traced to specific jobs and the remainder of which was treated as indirect materials.

c$.$ Payroll costs totaling $$15,600$ were recorded as follows: $$10,400$ for assembly workers

$$1,200$ for factory supervision

$$1,300$ for administrative personnel

$$2,700$ for sales commissions

d$.$ Recorded depreciation: $$5,800$ for factory machines, $$1,200$ for the copier used in the administrative office.

e$.$ Recorded $$1,400$ of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense.

f$.$ Paid $$4,700$ in other factory costs in cash.

g$.$ Applied manufacturing overhead at a rate of $200$ percent of direct labor cost

h$.$ Completed all jobs but one; the job cost sheet for the uncompleted job shows $$2,300$ for direct materials, $$2,300$ for direct labor, and $$4,600$ for applied overhead.

i$.$ Sold jobs costing $$51,100.$ The revenue earned on these jobs was $$66,430.$

Required:

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.

Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance.

Determine the amount of over$-$ or underapplied overhead.

Compute adjusted gross profit assuming that any over$-$ or underapplied overhead balance is adjusted directly to Cost of Goods Sold.

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Complete this question by entering your answers in the tabs below.

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

$\backslash$table$[[$Raw Materials Inventory$],[$Debit$,,],[$Beginning Balance,$16,300,,],[($a$),27,800,20,700,($b$)],[,,,],[$Ending Balance,$23,400,,]]$