Custom Cabinetry has one job in process $($Job $120)$ as of June $30$; at that time, its job cost sheet reports direct materials of

$$6,800,$ direct labor of $$4,100,$ and applied overhead of $$3,485.$ Custom Cabinetry applies overhead at the rate of $85\%$ of

direct labor cost. During July, Job $120$ is sold $($on credit$)$ for $$25,000,$ Job $121$ is started and completed, and Job $122$ is started

and still in process at the end of July. Custom Cabinetry incurs the following costs during July.

Prepare journal entries for the following July transactions and events a through $e.$

a$.$ Direct materials used.

b$.$ Direct labor used.

c$.$ Overhead applied.

d$.$ Sale of Job $120.$

e$.$ Cost of goods sold for Job $120.$ Hint. Job $120$ has costs from June and July.

Compute the July $31$ balances of the Work in Process Inventory and the Finished Goods Inventory accounts. $($There were

no jobs in Finished Goods Inventory at June $30.)$

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Prepare journal entries for the following July transactions and events a through e$.$