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1. Determine the over- or underapplied overhead for each department at the end of January.

2. What is the total cost of the furniture produced for City Furniture?

3. Prepare the entries required below to record the sale (on account) of the furniture to City Furniture. The sales price of the order was $147,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Georgla Woods, Inc., manufactures furniture to customers' specifications and uses job order costing. A predetermined overhead rate Is used in applying manufacturing overhead to Individual Jobs. In Department One, overhead is applied on the basis of machlne-hours, and In Department Two, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates to assist In determining the overhead application rate. Department Department One Two Direct labor cost Direct labor hours Manufacturing overhead Machine-hours $ 300,8e0 225,8e8 15,800 428,8ee 337,5e8 7,580 28,880 12,800 Production of a batch of custom furniture ordered by City Furniture (job no. 58) was started early In the year and completed three weeks later on January 29. The records for this Job show the following cost Information. Department Department One Two Job order: City Furniture (job no. 58): Direct materials cost Direct labor cost Direct labor hours Machine-hours $1e,188 $16,508 1,188 758 7,600 $11,180 748 588 Selected additional Information for January is as follows. Department Depar One 1,688 1,188 Two Direct labor hours-month of January Machine-hours-month of January Manufacturing overhead incurred in January 1,288 688 $26,540 $39,818

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