Exercise 15-5 Manufacturing cost flows LO P1, 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 $7,600, direct labor of $3,700, and applied overhead of $3,330. Custom Cabinetry applies overhead at the rate of 90% of direct labor cost. During July, Job 120 is sold (on account) for $25,500, 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.

July Product Costs Job 120 Job 121 Job 122 $2,200 $6,000 $2,800 3,100 Total Direct materials $11,000 11,400 2,800 5,500 Direct labor overhead applied ? General Journal No Transaction Debit Credit Work in process inventory a. Raw materials inventory Work in process inventory 2 b. Cash Work in process inventory 3 C. Factory overhead Accounts receivable 4 d. Sales 5 Cost of goods sold e. Finished goods inventory Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.) Work in Process Finished Goods Job Direct materials Direct labor Overhead Total cost S C