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 $3,600, and applied overhead of $3,060. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on credit) for $27,500, 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 Direct materials used Direct labor used $ 2,500 3,400 Job 121 $ 7,500 4,100 Job 122 $ 4,500 3,000 1. 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. 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for the following July transactions and events a through e. No Transaction General Journal 1 a. Work in process inventory Raw materials inventory Debit Credit 14,500 14,500 2 b. Work in process inventory Factory wages payable 10,500 10,500 3 C. Work in process inventory 8,925 Factory overhead 8,925 4 d. Accounts receivable Sales 5 e. Cost of goods sold Finished goods inventory < Required 1 Required 2 > 27,500 27,500 19,550 19,550 x Required 1 Required 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.) Work in Process Job # Direct materials Direct labor Overhead applied Total cost S 0 Finished Goods 0 < Required 1 Required 2 >