Question 3 Suppose inshape, Inc. manufactures custom workout and training equipment for schools and gyms. On January 1 , inshape has the following balances in each of its three inventory accounts for the Jobs remaining from previous production: 1. InShape purchased $135,000 of raw materiais on account. 2. InShape used $12,000 of direct materials for Job 12-03. They also started new Jobs; Job No: 0101 and Job No: 01-02 and used $102,000 and $15,000 of direct materials respectively. 3. Direct labor of $98,000 was incurred ($16,000 for Job 1203,$71,000 for Job 0101, and $11,000 for Job 01-02). 4. Overhead is allocated to jobs using direct labor cost as its base. InShape estimated that the total manufacturing overhead for the coming year would be $600,000 and that total direct labor cost would be $1,200,000. 5. InShape completed Jobs 12-03 and 01-01 and transferred them to Finished Goods. 6. Jobs 1203 and 0101 were sold for $95,000, and $220,000, respectively. Question 3 Suppose inshape, Inc. manufactures custom workout and training equipment for schools and gyms. On January 1 , inshape has the following balances in each of its three inventory accounts for the Jobs remaining from previous production: 1. InShape purchased $135,000 of raw materiais on account. 2. InShape used $12,000 of direct materials for Job 12-03. They also started new Jobs; Job No: 0101 and Job No: 01-02 and used $102,000 and $15,000 of direct materials respectively. 3. Direct labor of $98,000 was incurred ($16,000 for Job 1203,$71,000 for Job 0101, and $11,000 for Job 01-02). 4. Overhead is allocated to jobs using direct labor cost as its base. InShape estimated that the total manufacturing overhead for the coming year would be $600,000 and that total direct labor cost would be $1,200,000. 5. InShape completed Jobs 12-03 and 01-01 and transferred them to Finished Goods. 6. Jobs 1203 and 0101 were sold for $95,000, and $220,000, respectively