Prepare summary journal entries to record the following transactions for a company in its first month of operations.

1. Raw materials purchased on account, $102,000.
2. Direct materials used in production, $42,500. Indirect materials used in production, $15,000.
3. Paid cash for factory payroll, $55,000. Of this total, $37,000 is for direct labor and $18,000 is for indirect labor.
4. Paid cash for other actual overhead costs, $8,375.
5. Applied overhead at the rate of 125% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $72,600.
7. Sold jobs on account for $104,000 g(2). The jobs had a cost of $72,600 g(1)

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $6,900, direct labor of $3,500, and applied overhead of $2,800. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $24,000, 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 Costs Direct materials Job 120 Job 121 Job 122 Total $15,100 12,000 $2,600 3,800 $8,200 4,700 $4,300 3,500 Direct labor Overhead applied ? ? ? ? 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 general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.) Complete this question by entering your answers in the tabs below. 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. General Journal Credit Transaction Debit a Complete this question by entering your answers in the tabs below. Required 2 Required 1 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (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