Burton Company custom produces specialty souvenir products.During the current accounting period,the company completed the following transactions:
(a)Purchased $20,000 of raw materials,paying cash.
(b)Used direct materials in production as follows:

\begin{array}{|l|rr|}\hline \text { Job Number } & \text { Direct Materials } \\\hline 1 & \$ 10,000 \\\hline 2 & 5,000 \\\hline 3 & 2,000 \\\hline \text { Total } & \$ 17,000 \\\hline\end{array}

(c)Paid direct labor costs as follows:

\begin{array} { | l | l r | } \hline \text { Job Number } & \text { Direct Labor } \\\hline 1 & \$ 10,000 \\\hline 2 & { \$ 8, 000 } \\\hline 3 & \$ 6, 000 \\\hline \text { Total } & \$ 24,000 \\\hline\end{array}

(d)Paid cash for various actual factory overhead costs,$40,000.
(e)Applied factory overhead to production using a predetermined overhead rate of $1.50 per direct labor dollar.
(f)Completed Job 1.
(g)Job 1 was sold for $50,000 cash.
(h)Paid $1,000 for selling and administrative expenses.
Required:
1)Record the data in the T-accounts provided.Post costs to the job cost sheet for Job 1 as necessary.
Label the transactions (a)-(h).
$Burton Company custom produces specialty souvenir products.During the current accounting period,the company completed the following transactions: (a)Purchased $20,000 of raw materials,paying cash. (b)Used direct materials in production as follows: \begin{array}{|l|rr|} \hline \text { Job Number } & \text { Direct Materials } \\ \hline 1 & \$ 10,000 \\ \hline 2 & 5,000 \\ \hline 3 & 2,000 \\ \hline \text { Total } & \$ 17,000 \\ \hline \end{array} (c)Paid direct labor costs as follows: \begin{array} { | l | l r | } \hline \text { Job Number } & \text { Direct Labor } \\ \hline 1 & \$ 10,000 \\ \hline 2 & { \$ 8, 000 } \\ \hline 3 & \$ 6, 000 \\ \hline \text { Total } & \$ 24,000 \\ \hline \end{array} (d)Paid cash for various actual factory overhead costs,$40,000. (e)Applied factory overhead to production using a predetermined overhead rate of $1.50 per direct labor dollar. (f)Completed Job 1. (g)Job 1 was sold for $50,000 cash. (h)Paid $1,000 for selling and administrative expenses. Required: 1)Record the data in the T-accounts provided.Post costs to the job cost sheet for Job 1 as necessary. Label the transactions (a)-(h). 2)For transaction (i),post the closing entry for any underapplied or overapplied overhead assuming that the amount is written off directly against cost of goods sold. 3)Prepare a schedule of cost of goods manufactured and sold assuming there were no beginning inventories. 4)Compute the amount of gross profit earned on Job 1.$
2)For transaction (i),post the closing entry for any underapplied or overapplied overhead assuming that the amount is written off directly against cost of goods sold.
3)Prepare a schedule of cost of goods manufactured and sold assuming there were no beginning inventories.
4)Compute the amount of gross profit earned on Job 1.

O'Hare Company Is a Manufacturing Firm That Uses a Job-Order

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