Cherry Cotta makes custom ordered clay pots for residential gardens. Below is cost information regarding its latest job.

Materials were purchased on account. $18,996 purchased

A materials requisition form shows an amount of materials required for this job, 10% of which were used for general use. $12,450 requested

A labor time sheet shows the following.

Job 345
Employee	Role	Hours	Rate	Total
T. Walker	Crafting	23	$ 12.50	$ 287.50
M. Foster	Firing	18	$ 13.75	$ 247.50
C. Watson	Maintenance	6	$ 11.00	$ 66.00
K. Willis	Supervisor	10	$ 23.00	$ 230.00
				$ 831.00

The additional list below shows costs incurred.

Factory Utilities	$ 395
Advertising Expense	$ 625
Administrative Duties	$ 348
Factory Depreciation	$ 487
Factory Property Taxes	$ 950

At the beginning of the year, overhead costs and workload was estimated. Direct Labor hours drives the cost of overhead.

Estimated Overhead Cost	$ 90,000
Estimated Direct Labor Hours	1,500

By month's end, all previous jobs were completed, but only 80% of the pots started this month were completed. $22,000Total Sales

90% of the previous batch of pots were sold, while 70% of the pots completed this month were sold.

Required:

1. Complete the T-Accounts below.
2. Determine the Cost of Goods Manufactured.
3. Create a journal entry to dispose of the Over/Underapplied Overhead.
4. Determine the Cost of Goods Sold after disposing of the Over/Underapplied Overhead.
5. Determine the Gross Profit for the month.