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 $3,500, and applied overhead of $2,800. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $24,000, 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	$	2,600		$	8,200		$	4,300		$	15,100
Direct labor		3,800			4,700			3,500			12,000
Overhead applied		?			?			?			?

1. Prepare journal entries for the following in July.

1. Direct materials used in production.
2. Direct labor used in production.
3. Overhead applied.
4. The sale of Job 120.
5. 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. (Assume there are no jobs in Finished Goods Inventory as of June 30.)

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 $3,500, and applied overhead of $2,800. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $24,000, 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 Direct materials Job 121 Job 120 Job 122 Total $8,200 4,700 $2,600 3,800 $15,100 12,000 $4,300 3,500 Direct labor Overhead applied ? ? ? 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 general ledger accounts. (Assume theree are no jobs in Finished Goods Inventory as of June 30.) View transaction list Journal entry worksheet 2 3 1 4 5 Record the entry to assign direct materials to job Note: Enter debits before credits. Debit Transaction General Journal Credit a Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. 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 Direct materials Direct labor Overhead $ 0 Total cost Required 1 Required 2