Question

Christopher’s Custom Cabinet Company uses a job order costsystem with overhead applied as a percentage of direct labor costs.Inventory balances at the beginning of 2013 follow:

Raw materialsinventory	$	16,000
Work in processinventory		6,300
Finished goodsinventory		20,700

The following transactionsoccurred during January:

(a)	Purchased materials on accountfor $27,200.
(b)	Issued materials to production totaling $20,900, 90 percent ofwhich was traced to specific jobs and the remainder of which wastreated as indirect materials.
(c)	Payroll costs totaling $16,900were recorded as follows:
	$11,500for assembly workers
	1,100 for factorysupervision
	1,800 for administrativepersonnel
	2,500for sales commissions
(d)	Recorded depreciation: $5,600for machines, $500 for the copier used in the administrativeoffice.
(e)	Recorded $1,400 of expired insurance. Forty percent wasinsurance on the manufacturing facility, with the remainderclassified as an administrative expense.
(f)	Paid $4,600 in other factorycosts in cash.
(g)	Applied manufacturing overheadat a rate of 200 percent of direct labor cost.
(h)	Completed all jobs but one; the job cost sheet for this jobshows $2,500 for direct materials, $2,300 for direct labor, and$4,600 for applied overhead.
(i)	Sold jobs costing $51,000. The revenue earned on these jobs was$66,300.

Required:
1.	Set up T-accounts, record the beginning balances, post theJanuary transactions, and compute the final balance for thefollowing 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, andAdministrative Expenses.
g.	Sales Revenue.
h.	Other accounts (Cash, Payables,etc.).