PA2-5 (Algo) Recording Manufacturing Costs and Analyzing Manufacturing Overhead [LO 2-3, 2-4, 2-5] Christopher's Custom Cabinet Company uses a job order cost system with overhead appled as a percentage of direct labor costs. Inventory balonces at the beginning of tre current year follow. The following transactions occurred during January. a. Purehased moterisls on account for $26,100. b. Issued materials to production totaling $20100,90 percent of which was traced to specific jobs and the remainder of which was treated as indirect moterials. c. Payroll costs totaling $16,600 were recorded as follows: $10.000 for assembly workers $2,100 for factory supervision $2,300 for administrative personinel 52,200 for sales commissions d. Recorded depreciationc $5,900 for factory machines, $800 for the copier used in the administrative office. e. Pecorded $1500 of expired insurance. Forty percent was insurance on the monufacturing foclity, with the remainder classilied as an odiministrathve expense. 1. Paid $5,600 in other factory casts in cash. 9. Applied manufacturing overhead at a rate of 200 percent of direct labor cost. h. Completed ali jobs but one: the job cost sheet for the uncompleted job shows $2,500 for direct materials, $2,100 for direct labor, and $4.200 for applied cverhend. 1. Sold jobs costing $50,500. The revenue eamed on these jobs was $65.650. Required: 1. Set up Traccounts, fecord the beginning bolances, post the January transactions, and compute the final balance for the fotlowing accounts: a. Raw Materials inventory. b. Work in Process inventory. c. Finished Goods Inventory. 1. Sold jobs costing $50,500. The revenue earned on these jobs was $65,650. Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: a. Raw Materials Inventory. b. Work 5 Process inventory. c. Finished Goods inventory, d. Cost of Goods Sold. e. Manufacturing Overhead. t. Selling. General, and Administrative Expenses. g. Sales Revenue. 2. Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. 3. Determine the amount of over- or underapplled overhead. 4. Compute adjusted gross profit assuming that any over-or underapplied overhead balance is adjusted directly to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: Note: Post all amounts separately. Do not combine/add any dollar amounts when posting to the T-accounts. a. Raw Materials Inventory. b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. -. Manufacturing Overheod. 1. Seillng, General, and Administrative Expenses. 9. Sales Revenue