Question 3 Better Than That, Co. provides the following information:

• October 31 inventory of raw materials is $35,000.
• Raw materials purchases in November are $240,000.
• Total factory payroll cost (includes both direct and indirect labor) in November is $105,850.
• Actual factory overhead costs incurred in November are as follows: indirect materials, $15,900; indirect labor, $9,000; factory rent, $25,000; factory utilities, $23,880; and factory equipment depreciation, $42,000.
• The predetermined overhead rate is 120% of direct labor cost.
• Job L5 is sold to a customer in November for $255,000 on account.
• Costs related to the three jobs worked on in November follow.

	Job J1				Job L5				Job T2
Balances on October 31	:
Direct materials		$	0			$	0				$ 19,500
Direct labor			0				0				$6,850
Applied overhead			0				0				$8,220
Costs during November:
Direct materials			56,400				101,800			$	72,100
Direct labor			22,550				45,600				28,700
Applied overhead			?				?				?
Status on November 30	In process				Finished (sold)					Finished (unsold)

1. Determine:
   1. The WIP inventory account balance as of October 31^st.
   2. Total direct materials cost for November
   3. Total direct labor cost for November
   4. Total Applied factory OH cost for November
   5. The total costs assigned to each job as of November 30^th (including any balances from October 31).
2. Prepare journal entries for the month of November to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry).

1. Raw materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid in cash and assigned to Work in Process Inventory.
4. Overhead costs applied to Work in Process Inventory.
5. Indirect materials used and assigned to Factory Overhead.
6. Indirect labor paid in cash and assigned to Factory Overhead.
7. Actual other overhead costs incurred (assume Factory rent and utilities are paid in cash).
8. Transfer of Jobs L5 and T2 to Finished Goods Inventory.
9. Revenue from the sale of Job L5.
10. Cost of goods sold for Job L5.
11. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account (Assume the amount is not material).

3. Determine the November 30^th balances of the firms three inventory accounts:
   1. raw materials inventory account
   2. WIP inventory account
   3. finished goods inventory account (assume finished goods inventory balance as of October 31^st was $0).
4. Prepare a schedule of cost of goods manufactured for November.
5. Calculate the firms gross profit for November.