Problem D Log Cabin Homes, Inc., uses a job cost system to account for its jobs, which are prefabricated houses. As of January 1, its records showed inventories as follows: Materials and supplies $00,00o Work in process (Job Nos. 22 and 23) 180,000o Finished goods (Job No. 21) 140,000 The work in process inventory consisted of two jobs: Job No. Direct Direct labor overhead Total materials 22 $36,000 $40,000 $20,000 23 40,000000 6000 $76,000 $68,000 $96,000 4,000 180,000 Cost and sales data: Materials purchased on account, $400,0o0 Direct Materials used: Job No. 22, $60,000; Job No. 23, $120,000; Job No. 24, 180,000. Indirect materials used, $10,000. Direct labor costs: Job No. 22, $100,000; Job No. 23, $200,000; and Job No. 24, . Adapted from "Accounting Principles: A Business Perspective,F Open College Textbook originally by Hermanson, Edwards, and Maher inancial Accounting (Chapters 9-18)" A Textbook Equity $80,000. Indirect labor costs, $80,000. Overhead is assigned to jobs at $100 per machine-hour. Job No. 22 used 500 machine-hours, Job No. 23 used 1,000 machine-hours, and Job No. 24 used 300 machine-hours in January Job No. 22 and 23 were completed and transferred to Finished Goods Inventory. Job No. 21 and 22 were sold on account for $1,200,oo0, total. Manufacturing overhead costs incurred, other than indirect materials and indirect labor, were depreciation, $60,000, and heat, light, power, miscellaneous, $30,000 (to be paid next month)