Problem D 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: Direct materials Direct Manufacturing Total labor overhead Job No. 22 $36,000 $40,000 $20,000 23 0,000 28,000 16,000 $96,000 84,000 $180,000 $76,000 $68,000 Cost and sales data: Materials purchased on account, $400,000 Direct Materials used: Job No. 22, $60,000; Job No. 23, $120,000; Job No. 24, 180,000. Indirect materials used, $10,000. Direct labor costs: Job No. 22, $100,00o; Job No. 23, $200,000; and Job No. 24, $80,000 Indirect labor costs, $80,0oo. 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. . . . Job No. 22 and 23 were completed and transferred to Finished Goods Inventory Job No. 21 and 22 were sold on account for $1,200,oo0, total. Manufacturing overhead costs incurred, other than indirect materials and indirect labor, were depreciation, $60,00o, and heat, light, power, miscellaneous, $30,000 (to be paid next month). Required: a. Calculate the Job Cost for each job. b. Prepare journal entries to assign the costs to jobs using the job costs in part 1. c. Assuming selling and administrative expenses were $100,ooo, prepare an income statement