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hapter 2: Job-Order Costing Exercises oley Company uses a job-order costing system. The following data relate to the month of October, the first month of he company's fiscal year: a. Raw materials purchased on account, $210,000 b. Raw materials issued to production, $190,000 ( 80% direct and 20% indirect) c. Direct labor cost incurred, $49,000; and indirect labor cost incurred, $21,000 d. Depreciation recorded on factory equipment, $105,000 e. Other manufacturing overhead costs incurred during October, $130,000 (credit Accounts Payable) f. The company applies manufacturing overhead cost to production on the basis of $4 per machine hour. 75,000 machine hours were recorded for October. g. Production orders costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Production orders that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. 1) Prepare journal entries for the transactions as appropriate. 2) Prepare t-accounts for Manufacturing Overhead and Work In Process, assuming the WIP beginning balance is $35,000. Post the relevant information above to each account. 3) Compute the ending balance in the Manufacturing Overhead and WIP Inventory accounts. Is MOH over or under-applied

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