(Journal entries; assigning costs to jobs) Omega Engineers uses a job order costing system. On September 1, 2006, the company had the following ac¬ count balances:

a. Prepare journal entries for the transactions for September 2006.

b. Use T-accounts to post the information from the journal entries in part

(a) to the job cost subsidiary accounts and to general ledger accounts.

c. Reconcile the September 30 balances in the subsidiary ledger with the Work in Process Inventory account in the general ledger.

d. Determine the amount of underapplied or overapplied overhead for September.LO1.

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Raw Material Inventory Work in Process Inventory Cost of Goods Sold $ 166,200 756,300 2,432,000 On September 1, the three jobs in Work in Process Inventory had the fol- lowing balances: Job #75 Job #78 Job #82 $293,200 116,800 346,300 The following transactions occurred during September: Sept 1 4 15 Purchased $970,000 of raw material on account. Issued $950,000 of raw material as follows: Job # 75, $144,800; Job # 78, $126,300; Job # 82, $496,100; Job #86, $156,200; indirect material, $26,600. Prepared and paid the $378,500 factory payroll for Sept. 1-15. Analysis of this payroll showed the following information: Job #75 Job #78 Job # 82 Job #86 Indirect wages 4,830 hours. $ 42,300 13,160 hours 133,600 10,150 hours 101,500 5,140 hours 55,400 45,700 15 15 15 15 20 24 25 30 30 On each payroll date, Omega Engineers applies manufacturing overhead to jobs at a rate of $8.50 per direct labor hour.. Job #75 was completed and accepted by the customer and billed at a selling price of cost plus 25 percent. Selling prices are rounded to the nearest whole dollar. Paid the following monthly factory bills: utilities, $19,800; rent, $35,300; and ac- counts payable (accrued in August), $98,400. Purchased raw material on account, $312,000. Issued raw material as follows: Job # 78, $77,400; Job # 82, $106,300; Job #86, $174,500; and indirect material, $27,900. Recorded additional factory overhead costs as follows: depreciation, $104,500; expired prepaid insurance, $32,700; and accrued taxes and licenses, $16,200. Recorded and paid the factory payroll for Sept. 16-30 of $357,200. Analysis of the payroll follows: Job # 78 Job # 82 8,940 hours 13,650 hours $ 88,700 114,200 Job #86 9,980 hours 121,800 Indirect wages 32,500 30 Applied overhead for the second half of the month to jobs.