Exercise 15-10 (Algo) Recording materials, labor, overhead, and sales; computing inventory cost LO P1, P2, P3 Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,100, direct labor of $4,000, and applied overhead of $3,400. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on credit) for $23,500, 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. Job 120 Direct materials used Direct labor used $ 2,900 2,900 Job 121 $ 6,600 4,600 Job 122 $ 4,400 3,800 1. Prepare journal entries for the following July transactions and events a through e. a. Direct materials used. b. Direct labor used. c. Overhead applied. d. Sale of Job 120. e. Cost of goods sold for Job 120. Hint. Job 120 has costs from June and July. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory at June 30.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for the following July transactions and events a through e. No Transaction General Journal 1 a. Work in process inventory Raw materials inventory 2 b. Work in process inventory Salaries expense Debit Credit 13,900 13,900 11,800 11,800 3 C. Work in process inventory 9,604 Factory overhead 9,604 4 d. Accounts receivable Sales 23,500 23,500 5 e. Cost of goods sold 22,764 Finished goods inventory 22,764 Required 1 Required 2 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory at June 30.) Work in Process Finished Goods Job # Direct materials Job 122 Job 121 IS 4,000 $ 6,600 Direct labor 3,800 4,600 Overhead applied 3,230 3,910 Total cost S 11,030 $ 15,110 < Required 1 Required 2 >