Job-Order Costing Case Your team are the Accountants for a Custom Furniture company. The company uses a job order costing system and applies overhead on the basis of direct labor hours. On January 31, 2019, Job No. 30 was the only job in process. On January 31, 2019, raw materials inventory consisted of $25,000. Job No. 32 was sold for $120,000 during January 2019. Costing information for jobs 30, 31 and 32 are below. Job No. Direct Materials Direct Labor Direct Labor Hours 30 $ 8,000 $ 18,000 1,200 31 $ 3,000 $ 12,000 800 32 $ 7,000 $ 11,000 900 The predetermined overhead rate for 2019 is based on the company's estimated total manufacturing overhead for 2019 which is $1,020,000 and the estimated total direct labor hours of 33,000. The owner of the company does not have an accounting background and doesn't understand how the balances of the inventory accounts are calculated for January 31, 2019, nor how gross profit is calculated for Job No. 32. You are to: 1. Give a description of the three inventory accounts, show how they will be listed on the balance sheet as of January 31, 2019. Show calculations if applicable. 2. Calculate gross profit for Job 32, show all calculations 3. Prepare an executive summary to explain your results. Performance Indicators 1. Correctly calculate predetermined overhead rate 2. Correctly calculate the balances of the inventory accounts 3. Correctly calculate gross profit for Job 32 4. Differentiate between the three inventory accounts 5. Explain the costs that go into cost of goods sold for a manufacturing company