Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adju Goods Sold. Determine how much gross profit the company would report during the month of January bef the overhead balance. Compute adjusted gross profit assumang that any ovet- or undefapplied overhead balance is adjusted directly to Cost of Goods Sold. 8 Answer is not complete. Complete this question by entering your answers in the tabs below. Set up T-accounts, record the beginning balances, post the January transactions, and compote the final balance for the following accounts: a. Raw Materiais Inventory. b. Work in Procest Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufacturing Overhead. f. Selling, General, and Administrative Expenses. g. Sales Revenue. Christopher's Custom Cabinet Company uses a job order cost system with averhead applied as a percentage of divect labor costs. Inventory balances at the beginning of the current year follow The following transactions occurred during January a. Purchased matenals on account for $26,500 b. Issued materials to production totaling $21,400,90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials: c. Payroll costs totaling $17,900 were recorded as follows $11.000 for assembly workers $2,500 for factory supervision $2.100 for administrative personnel $2,300 for sales commissions d. Recorded depreciation: $5.000 for factory machines, $1,200 for the copier used in the adinisistrative office. e. Recorded $1,300 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. an administrative expense f. Paid $5,400 in other factory costs in cash. 9. 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, $2,500 for direct labor, and $5,000 for applied overhead. i. Sold jobs costing $50,600. The revenue earned on these jobs was $65,780. Required: 1. Set up T-accounts, record the beginning bolances, post the January transactions, and compute the finat balancelor the followirip accounts: a. Raw Materials inventory b. Work in Process inventory c. Finished Goods Inventory d. Cost of Goods Sold. e. Manufacturing Overhead. t. 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 overthead balance. 3. Determine the amount of ovet-or underapplied overhead Determine the amount of over- or underapplied overhead
