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 applied as a percentage of direct labor costs. Inventory balances at the beginning of 2018 follow: Raw Materials Inventory Work in Process Inventory $15,500 6,700 Finished Goods Inventory 20,700 The following transactions occurred during January: (a) Purchased materials on account for $27,200. (b) Issued materials to production totaling $21,100, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials. (c) Payroll costs totaling $18,100 were recorded as follows: $10,500 for assembly workers 2,700 for factory supervision 2,500 for administrative personnel 2,400 for sales commissions (d) Recorded depreciation: $4,500 for factory machines, $1,200 for the copier used in the administrative office. (e) Recorded $1,500 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. (f) Paid $6,100 in other factory costs in cash. (g) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. (h) Completed all jobs but one; the job cost sheet for the uncompleted job shows $2,100 for direct materials, $2,200 for direct labor, and $4,400 for applied overhead. (i) Sold jobs costing $51,800. The revenue earned on these jobs was $67,340. 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 in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufacturing Overhead. f. Selling, General, and Administrative Expenses. g. Sales Revenue.