Forester Manufacturing Company uses a job order cost accounting system to keep track of finished jobs and jobs in process. All production is either to customer order or to specification. The following is a summary of transactions completed during the month of August:

(a) Purchased materials (direct and indirect) on account, $158,000.

(b) Requisitioned materials from storerooms, $149,000 (direct materials, $122,000; indirect materials, $27,000). Charged to jobs as follows:

Job No. 805: $34,000

Job No. 806: 44,000

Job No. 807: 20,000

Job No. 808: 24,000

(c) Incurred factory labor cost for the month, $211,800 (direct labor, $150,000; indirect labor, $61,800). Charged to jobs as follows:

Job No. 805: $25,500

Job No. 806: 39,800

Job No. 807: 51,400

Job No. 808: 33,300

(d) Incurred other factory overhead costs, $85,000 (depreciation expense, $10,000; miscellaneous factory expense on account, $75,000).

(e) Applied factory overhead, 120% of direct labor cost incurred on jobs. (Make a separate debit for each job.)

(f) Finished Job Nos. 805, 806, and 807 and placed them in stock as products X, Y, and Z, respectively.

(g) Sold products X, Y, and Z on account for $123,000, $150,000, and $168,000, respectively. Costs of products sold were $90,100, $122,000, and $140,000, respectively. (Products Y and Z included some items from the beginning inventory of finished goods and some from the current period’s production.)

The beginning balances in the inventory accounts were as follows:

Work in Process ....$0

Finished Goods .....$76,000 (Product Y, $46,000; Product Z, $30,000).

REQUIRED

1. Prepare general journal entries for the foregoing transactions.

2. Post the entries to the general ledger T accounts for Work in Process and

Finished Goods, and compute the ending balances in these accounts.

3. Determine the job cost ledger balance to support the balance in the work in process account.

4. Determine the amount of under- or overapplied factory overhead.