Exercise 15-5 Manufacturing cost flows 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 $7,800, direct labor of $4,400, and applied overhead of $3,520. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $31,000, 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 Corts Job 120 Job 121 Job 122 Direct materials $2,100 $6,000 $2,500 $10,600 Direct labor 5,300 Overhead applied Total 3,100 2,800 2 11,200 2 2 1. Prepare journal entries for the following in July. a. Direct materials used in production. b. Direct labor used in production. c. Overhead applied. d. The sale of Job 120. e. 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 Journal entry worksheet 1 2 3 4 5 Record the entry to assign direct materials to job. Note: Enter debits before credits Debit General Journal Transaction Credit a Record entry Clear entry View general Journal Required 1 Required 2 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general led- (Assume there are no jobs in Finished Goods Inventory as of June 30.) Work in Process Finished Goods Job # Direct materials Direct labor Overhead $ Total cost 0 0 $