PROBLEM TWO Mr. Snell normal costing system and applies overhead on the basis of direct labor cost. At the beginning of September, he had no a master cabinetmaker, owns and operates a custom-made cabinetry shop. He uses a outstanding debt and the following balances were in the general ledger: $ 17,750e 2,250 Cash Raw Materials Inventory 750 Stockholders' Equity Supplies Inventory Work in Process Inventory Finished Goods Inventory $ Common Stock $1,000 Retained Earnings 0 The subsidiary ledgers for work in process are as follows: Overhead $ 660 Job -3 Materials Labor $ 750 $1,100 -4 900 650 390 420 -5 700 325 Other items of importance are: 1. Two additional jobs 2. $2,725 of raw materials were were started: A6, A7.* purchased during the month on account 3. Raw materials listed were used; A-3 $280, A-4 $350. A-5 $520, A-6 $375, A-7 $250. 4. Supplies of $750 were 5. Direct labor was A-3 $750, A-4 $1,300. A-5 $550, A-6 $490, A-7 $370. 6. Indirect labor was $2,000. 7. Overhead is applied 8. General administrative expenses for the month, $3,525 9. Jobs A-3, A-5, and A-7 were finished. 10. A-3 was sold for $6,125 for cash and A-7 was sold for $1,750 on acounr purchased for cash, while $500 were used. as 60% of direct labor cost paid in cash. production; overhead is applied to were REQUIRED: 1. Prepare the balance sheet for August 31. 2. Prepare job cost sheets for all jobs A-3, A-4, A-5, A-6, A-7.* 3. Prepare all of the journal entries and T-charts for September. 4. Prepare cost of goods manufactured statement for September. 5. Prepare the cost of goods sold statement for September.' 6. Close the over-under applied overhead to the cost of goods sold for September. 7. Prepare the income statement for September. 8. Prepare a statement of retained earnings. 9. Prepare a balance sheet for September 30. 10. Without regard MATERIAL Prorate the balance to the appropriate accounts. to the line 6 above, assume that the over or under applied overhead is