Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs.Inventory balances at the beginning of 2018 follow:Raw Materials InventoryWork in Process InventoryFinished Goods Inventory$16,8006,80020,100The following transactions occurred during January:(a) Purchased materials on account for $26,600.(b) Issued materials to production totaling $20,100, 90 percent of which was traced to specific jobs and the remainder of which wastreated as indirect materials.(c) Payroll costs totaling $17,100 were recorded as follows:$10,600 for assembly workers2,200 for factory supervision1,400 for administrative personnel2,900 for sales commissions(d) Recorded depreciation: $4,700 for factory machines, $1,300 for the copier used in the administrative office.(e) Recorded $1,100 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as anadministrative expense.(f) Paid $6,100 in other factory costs in cash.(g) Applied manufacturing overhead at a rate of 200 percent of direct labor cost.(h) Completed all jobs but one; the job cost sheet for the uncompleted job shows $2,400 for direct materials, $2,100 for direct labor,and $4,200 for applied overhead.(1) Sold jobs costing $51,400. The revenue earned on these jobs was $66,820.Required:1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the followingaccounts:a. Raw Materials Inventory.b. Work in Process Inventory.c. Finished Goods Inventory.d. Cost of Goods Sold.e. Manufacturing Overhead.f. Selling, General, and Administrative Expenses.g. Sales Revenue.2. Determine how much gross profit the company would report during the month of January before any adjustment is made for theoverhead balance.3. Determine the amount of over- or underapplied overhead.4. Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of GoodsSold. Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: (Post allamounts separately. Do not combine/add any dollar amounts when posting to the T-accounts.)a. Raw Materials Inventory.b. Work in Process Inventory.c. Finished Goods Inventory.d. Cost of Goods Sold.e. Manufacturing Overhead.f. Selling, General, and Administrative Expenses.g. Sales Revenue.Show lessARaw Materials InventoryWork in Process InventoryBeg. Bal.16,800Beg. Bal.6,800End. Bal.End. Bal.Finished Goods InventoryCost of Goods SoldBeg. Bal.20,100Beg. Bal.End. Bal.End. Bal,Manufacturing OverheadSelling, General, and Administrative ExpensesBeg. Bal.Beg. Bal.End. Bal.End. Bal.Sales RevenueBeg. Bal.End. Bal.< Required 1Required 2 >

Name: Christopher's Custom Cabinet Company uses a job order cost system wit
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs.Inventory balances at the beginning of 2018 follow:Raw Materials InventoryWork in Process InventoryFinished Goods Inventory