Starr Company reports the following information for August. $76,200 $48,000 Raw materials purchased on account Direct materials used in production Factory wages earned (direct labor) Overhead rate $15,350 120% of direct labor cost Prepare journal entries to record the following events. 1. Raw materials purchased. 2. Direct materials used in production. 3. Direct labor used in production. 4. Applied overhead. Exercise 2-5 Manufacturing cost flows CP1 P2 P3 Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $6,000, direct labor of $2,800, and applied overhead of $2,240. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on account) for $22,000, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July. Job Job Job 120 121 122 Tota $1,000 $6,000 $2,500 $9,50 July Product Costs Direct materials Direct labor Overhead applied 2,200 3,700 2,100 8,00 ? ? ? ? 1. Prepare journal entries for the 5:54 120 121 122 Total $1,000 $6,000 $2,500 $9,500 tosts Direct naterials Direct abor Overhead pplied 2,200 3,700 2,100 8,000 ? ? ? ? 1. Prepare journal entries for the following transactions and events a through e in July. a. Direct materials used in production. b. Direct labor used in production. c. Overhead applied. d. The sale of Job 120. e. Cost of goods sold for Job 120. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.)