Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $9,000, direct labor of $3,000, and applied overhead of $2,700. Custom Cabinetry applies overhead at the rate of 90% 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	$	2,900		$	6,500		$	3,500		$	12,900
Direct labor		2,400			5,100			3,300			10,800
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 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. View transaction list View journal entry worksheet No Transaction Debit Credit 1 a. General Journal Work in process inventory Raw materials inventory 12,900 12,900 2 b. 10,800 Work in process inventory Factory wages payable 10,800 3 C. 9,720 Work in process inventory Factory overhead 9,720 4 d. 24,000 Accounts receivable Sales 24,000 5 e. 22,160 Cost of goods sold Finished goods inventory 22,160 Required 1 Required 2 > 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.) Job # Direct materials Direct labor Overhead Work in Process Finished Goods Job 122 Job 121 $ 3,500 $ 6,500 3,300 5,100 Total cost $ 6,800 $ 11,600