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Instructions:

Prepare entries in a job order cost system and job cost sheets.

M Manufacturing Company employs a job order cost accounting system and keeps

perpetual inventory records. Beginning job balances are recorded on the job cost sheets.

The following transactions occurred in January

$1$ Assign direct materials and direct labor to jobs as follows.

Job No$.$

Direct

Materials Direct Labor

$255,0003,000$

$2617,00012,000$

$2713,0009,000$

$35,00024,000$

$2$ Manufacturing overhead was applied to jobs using a predetermined overhead rate based on

on $$22$ per direct labor hour. Hours worked are: Job $25-200$; Job $26-800$; Job $27-600.$

$3$ Actual manufacturing overhead costs incurred during the month amounted to $$42,500.$

$4$ Job $25$ and Job $26$ were completed during the month.

Instructions

$($a$)$ Prepare the journal entries to record the actual overhead costs that were paid in cash.

$($b$)$ Prepare the journal entries to record the assignment of direct materials, direct labor, and

manufacturing overhead costs to production.

$($c$)$ Total the job cost sheets for any job$($s$)$ completed during the month. Prepare the journal

entry $($or entries$)$ to record the completion of any job$($s$)$ during the month.

$($d$)$ What is the amount of over$-$ or underapplied overhead? Complete the journal entry.

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