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 the current year follow: The following transactions occurred during January: a. Purchased materials on account for $26,000. b. Issued materials to production totaling $20,100,90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials. c. Payroll costs totaling $17,300 were recorded as follows: $10,200 for assembly workers $1.000 for factory supervision $2.600 for administrative personnel $3,500 for sales commissions d. Recorded depreciation: $4,100 for factory machines, $1,100 for the copler used in the administrative office. e. Recorded $1,200 of expired insurance. Forty percent was insurance on the manufacturing facility. with the remainder classifled as an administrative expense. f. Paid $6.200 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 $2,300 for direct materials, $2,100 for direct labor, and $4,200 for applied overhead. i. Sold jobs costing $51,900. The revenue earned on these jobs was $67,470. 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: a. Raw Materials Inventory. b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufocturing 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 adjustmernt is made for the overhead 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 direftly to Cost of Goods Sold. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the foliowing accounts: Note: Post all amounts separately. Do not combine/add any dollar amounts when posting to the T-accounts. a. Raw Materials Imventory. b. Work in Process Imventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufacturing Overhead. f. Selling, General, and Administrative Expenses. 9. Sales Revenue. \begin{tabular}{|l|r|r|} \hline \multicolumn{3}{|c|}{ Finished Goods Inventory } \\ \hline Bobinning Balance & 20,800 & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Ending Bolance & 20,800 & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline Beginning Balance & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Sales Revenue \begin{tabular}{|l|r|r|r|} \hline \multicolumn{5}{|c|}{ Sales Revenue } \\ \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}