Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $6,900, direct labor of $4,300, and applied overhead of $3,655. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on account) for $22,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July July Product Costs Job 120 Job 121 Job 122 Total Direct materials $1,300 $6,300 $2,800 $10,400 Direct labor 3,700 4,700 3,000 11,400 Overhead applied 7 7 ? 7 1. Prepare journal entries for the following in July, a. Direct materials used in production. b. Direct labor used in production 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 accounts. (Assume there are no Jobs in Finished Goods Inventory as of June 30.) Required 1 Required 2 Prepare journal entries for the above transactions in July. No Transaction General Journal Work in process inventory Raw materials inventory Debit Credit 1 > 10,400 10,400 2 b. Work in process inventory Factory wages payable 11,400 Oo 11,400 3 C. 9,690 Work in process inventory Factory overhead 9,690 4 d. 22,500 Accounts receivable Sales 22,500 5 e. Cost of goods sold Finished goods inventory Required 1 Required 2 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.) Finished Goods Work in Process Job 122 Job 121 Job # Direct materials Direct labor Overhead + Total cost $ 0 $ 0