E$3\mathrm{.}26($LO$3,5)$ Laubitz Company begins operations on April $1.$ Information from job cost sheets shows the following:

Manufacturing Costs Assigned

Each job was sold for $25\%$ above its cost in the month following completion.

Instructions

a$.$ Calculate the balance in Work in Process Inventory at the end of each month.

b$.$ Calculate the balance in Finished Goods Inventory at the end of each month.

c$.$ Calculate the gross profit for May, June, and July.

Prepare entries for service organizations.