Custom Cabinetry has one job in process $($Job $120)$ as of June $30$; at that time, its job cost sheet reports direct materials of $$7,500,$ direct labor of $$3,800,$ and applied overhead of $$3,230.$ Custom Cabinetry applies overhead at the rate of $85\%$ of direct labor cost. During July, Job $120$ is sold $($on credit$)$ for $$28,000,$ Job $121$ is started and completed, and Job $122$ is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July.

$\backslash$table$[[,$Job $120,$Job $121,$Job $122],[$Direct materials used,$$1,900,$$$6,900,$$$3,600],[$Direct labor used,$3,100,4,500,3,600]]$

Prepare journal entries for the following July transactions and events a through $e.$

a$.$ Direct materials used.

b$.$ Direct labor used.

c$.$ Overhead applied.

d$.$ Sale of Job $120.$

e$.$ Cost of goods sold for Job $120.$ Hint. Job $120$ has costs from June and July.

Compute the July $31$ balances of the Work in Process Inventory and the Finished Goods Inventory accounts. $($There were no jobs in Finished Goods Inventory at June $30.)$

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Prepare journal entries for the following July transactions and events a through $e.$

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$\backslash$table$[[,$No$,$Transaction,General Journal,Debit,Credit$],[\backslash$rho $,1,$a$.,$Work in process inventory,$12,400,],[,,$Raw materials inventory,,$12,400],[$i$,2,$b$.,$Work in process inventory,$11,200,],[,,$Salaries expense,,$11,200],[,,3,$c$.,$Work in process inventory,$9,520,],[,,$Overapplied overhead,,$9,520],[$in$,4,$d$.,$Accounts receivable,$28,000,],[,,$Sales,,$28,000],[?,5,$e$.,$Cost of goods sold,$22,165,],[,,$Finished goods inventory,,$22,165]]$ Compute the July $31$ balances of the Work in Process Inventory and the Finished Goods Inventory accounts. $($There were no jobs

in Finished Goods Inventory at June $30.)$

Complete this question by entering your answers in the tabs below.

Required $2$

Compute the July $31$ balances of the Work in Process Inventory and the Finished Goods Inventory accounts. $($There were no

jobs in Finished Goods Inventory at June $30.)$

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