Custom Cabinetry has one job in process $($Job $120)$ as of June; at that time, its job cost sheet reports direct materials of $$6,000,$ direct labor of $$2,800,$ and applied overhead of $$2,240.$ Custom Cabinetry applies

overhead at the rate of $80\%$ of direct labor cost. During July, Job $120$ is sold $($on account$)$ for $$22,000.$ Job $121$ is started and completed, and Job $122$ is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. Job $120$: Direct Materials $$1,000,$ Direct labor $2,200,$ Overhead applied $(80\%$ of direct Labor$)1,760$; Job $121$: direct Materials $6,000,$ Direct Labor $3,700,$ Overhead applied $(80\%$ of Direct Labor$)2,960$; Job $122$: Direct Materials $2,500,$ Direct Labor $2,100,$ Overhead applied $(80\%$ of Direct Labor$)1,680$

$1.$ Prepare Journal Entries for the following in July:

a$.$ Direct materials used

b$.$ Direct labor used in production $($but not yet paid$).$

c$.$ Overhead applied.

d$.$ The sale of Job $120.$

e$.$ Cost of goods sold for Job $120.$

$2.$ Compute the July $31$ balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts.