Redmond Manufacturing Company began operations on January 1. The company was affected by the following

events during its first year of operation:

a) Company issued stock to owners for $100,000 cash.

b) Purchased materials, $8,000 cash.

c) Transferred $4,000 of direct materials to production (Job #1: $3,000; Job #2: $1,000).

d) Paid direct labor costs, $5,000 (Job #1: $2,500; Job #2: $2,500).

) Paid $3,000 cash for various actual overhead costs.

f) Allocated overhead to work in process at 60% of direct labor cost.

g) Completed Job #1 and transferred it to finished goods.

h) Sold Job #1 for $8,300 cash.

) Paid $200 cash for selling and administrative expenses.

Required:

1) Determine the ending balance in the Work in Process account.

2) Determine the cost of goods sald.

3) Compute the amount of gross profit earned on Job #1.