Custom Cabinetry has one job in process $($Job $120)$ as of June $30$; at that time, its job cost sheet reports direct materials of $$7,500,$ direct labor of $$4,100,$ and applied overhead of $$3,690.$ Custom Cabinetry applies overhead at the rate of $90\%$ of direct labor cost. During July, Job $120$ is sold $($on credit$)$ for $$28,500,$ 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 $120$ Job $121$ Job $122$

Direct materials used $ $2,400$ $ $8,100$ $ $4,200$

Direct labor used $3,0005,1003,200$

$1.$Prepare journal entries for the following July transactions and events a through e$.$

Direct materials used.

Direct labor used.

Overhead applied.

Sale of Job $120.$

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

$2.$ 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 $30.)$