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INSTRUCTIONS
1. Enter the transactions in the T-accounts below. Assume the opening balance of
Cash is $9,000.
2. Determine the ending balance of each account.
3. What was the gross profit earned on Job #101?
4. What was the gross margin ratio earned on Job #101?
5. If management had expected a gross margin ratio of 20% on Job #101, do you
believe the actual results warrant further investigation by management? Why or why
not?
6. Is factory overapplied or underapplied, and by how much?