Ex$3.$ Custom Cabinetry has one job in process $($Job $120)$ as of June $30$; at that time, its job cost sheet reports direct

materials of $$6,000,$ direct labor of $$2,800,$ and applied overhead of $$2,240.$ Custom Cabinetry applies

overhead at the rate of $80\%$ of direct labor cost. During July, Job $120$ is sold $($on account$)$ for $$22,000.$ 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.

Prepare journal entries for the following in July.

a$.$ Direct materials used

b$.$ Direct labor used in production $($but not yet paid$).$

c$.$ Overhead applied.

d$.$ The sale of Job $120.$

e$.$ Cost of goods sold for Job $120.$

Compute the July $31$ balances of the Work in Process Inventory and the Finished Goods Inventory

general ledger accounts.