Exercise 15-9 (Algo) Recording materials, labor, and overhead LO P1, P2, P3 Starr Company shows the following information for the month. Raw materials purchased on credit $ 85,000 Direct materials used $ 50,000 Direct labor used $ 17,900 Overhead rate 125% of direct labor cost Prepare journal entries to record the following. Raw materials purchased. Direct materials used. Direct labor used. Applied overhead.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 $9,000, direct labor of $3,900, and applied overhead of $3,510. Custom Cabinetry applies overhead at the rate of 90% of direct labor cost. During July, Job 120 is sold (on credit) for $27,500, 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	Job 121	Job 122
Direct materials used	$ 2,400	$ 7,900	$ 3,900
Direct labor used	3,300	4,000	3,500

Prepare journal entries for the following July transactions and events a through e.

Direct materials used.

Direct labor used.

Overhead applied.

Sale of Job 120.

Cost of goods sold for Job 120. Hint: Job 120 has costs from June and July.

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.)