$($need help with the ones I got wrong$)$ 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:

Raw Materials Inventory $ $20,000$

Work in Process Inventory $15,000$

Finished Goods Inventory $32,000$

The following transactions occurred during January:

a$.$ Purchased materials on account for $$26,000.$

b$.$ Issued materials to production totaling $$40,000,80$ percent of which was traced to specific jobs and the remainder of which was treated as indirect materials.

c$.$ Payroll costs totaling $$69,700$ were recorded as follows:

$$18,000$ for assembly workers

$$5,200$ for factory supervision

$$31,000$ for administrative personnel

$$15,500$ for sales commissions

d$.$ Recorded depreciation: $$8,500$ for factory machines, $$2,400$ for the copier used in the administrative office.

d$.$ Recorded $$4,000$ of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense.

Paid $$7,800$ in other factory costs in cash.

g$.$ Applied manufacturing overhead at a rate of $300$ percent of direct labor cost.

h$.$ Completed all jobs but one; the job cost sheet for the uncompleted job shows $$10,000$ for direct materials, $$3,000$ for direct labor, and $$9,000$ for applied overhead.

i$.$ Sold jobs costing $$70,000.$ The revenue earned on these jobs was $$91,000.$

Required:

$1.$ 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$.$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 the overhead balance. $($Answer $$21,000)$

$3.$ 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 Goods Sold.