Problem A: Log Cabin Homes, Inc., uses a job cost system to account for its jobs, which are prefabricated houses. As of January $1,$ its records showed inventories as follows:

Materials and supplies

$$100,000$

Work in process $($Job Nos. $22$ and $23)$

$180,000$

Finished goods $($Job No$.21)$

$140,000$

The work in process inventory consisted of two jobs:

Job No$.$

Direct materials

Direct labor

Manufacturing overhead

Total

$22$

$$36,000$

$$40,000$

$$20,000$

$$96,000$

$23$

$40,000$

$28,000$

$16,000$

$84,000$

$$180,000$

Cost and sales data:

a$.$ Materials purchased on account, $$400,000.$

b$.$ Direct materials used: Job No$.22,$ $$60,000$; Job No$.23,$ $$120,000$; Job No$.24,$ $$180,000.$

c$.$ Indirect materials used, $$10,000.$

d$.$ Direct labor costs: Job No$.22,$ $$100,000$; Job No$.23,$ $$200,000$; and Job No$.24,$ $$80,000.$

e$.$ Indirect labor costs, $$80,000.$

f$.$ Overhead is assigned to jobs at $$100$ per machine$-$hour. Job No$.22$ used $500$ machine$-$hours, Job No$.23$ used $1,000$ machine$-$hours, and Job No$.24$ used $300$ machine$-$hours in January.

g$.$ Job No$.22$ and $23$ were completed and transferred to Finished Goods Inventory.

h$.$ Job No$.21$ and $22$ were sold on account for $$1,200,000,$ total.

i$.$ Manufacturing overhead costs incurred, other than indirect materials and indirect labor, were depreciation, $$60,000,$ and heat, light, power, miscellaneous, $$30,000($to be paid next month$).$

Required:

$1.$ Calculate the Job Cost for each job.

$2.$ Calculate the ending balance in Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.

$3.$ Assuming selling and administrative expenses were $$100,000,$ prepare an income statement.