Christophers 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 $ 16,900 Work in Process Inventory 6,900 Finished Goods Inventory 21,200 The following transactions occurred during January: a Purchased materials on account for $26,300. 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 $17,100 were recorded as follows: $10,000 for assembly workers$2,900 for factory supervision$2,000 for administrative personnel$2,200 for sales commissions d Recorded depreciation: $5,900 for factory machines, $1,100 for the copier used in the administrative office. e Recorded $1,600 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. f Paid $5,000 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 $2,500 for direct materials, $2,000 for direct labor, and $4,000 for applied overhead. i Sold jobs costing $50,500. The revenue earned on these jobs was $65,650. 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