EXAMPLE: ACCOUNTING IN A JOB ORDER COST ACCOUNTING SYSTEM A clothing manufacturer had the following transactions in its first month of operations relating to its only job, Job \#101. a. Purchased 500 yards of silk (i) $8 per yard for cash. b. Requisitioned 300 yards of silk to produce Job \#101. c. Incurred 50 hours of direct labor to produce Job \#101; the average labor rate is $9 per hour. d. Paid various factory overhead costs, $650. e. Applied factory overhead at the rate of 150% of direct labor costs to Job #101. f. Completed Job \#101. g. Sold Job \#101, receiving cash of $4,400. INSTRUCTIONS 1. Enter the transactions in the T-accounts below. Assume the opening balance of Cash is $9,000. 2. Determine the ending balance of each account. 3. What was the gross profit earned on Job \#101? 4. What was the gross margin ratio earned on Job \#101? 5. If management had expected a gross margin ratio of 20% on Job \#101, do you believe the actual results warrant further investigation by management? Why or why not? 6. Is factory overapplied or underapplied, and by how much