(Journal entries) Clara Inc. produces custom-made floor tiles. During April 2006, the following information was obtained relating to operations and production:

1. Direct material purchased on account, $174,000.

2. Direct material issued to jobs, $163,800.

3. Direct labor hours incurred, 3,400. All direct factory employees were paid $15 per hour.

4. Actual factory overhead costs incurred for the month totaled $68,700.

This overhead consisted of $18,000 of supervisory salaries, $21,500 of depreciation charges, $7,200 of insurance, $12,500 of indirect material, and $9,500 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect material was taken from supplies inventory.

5. Overhead is applied to production at the rate of $20 per direct labor hour. Beginning balances of Raw Material Inventory and Work in Process Inventory were, respectively, $4,300 and $22,400. Ending Work in Process Inventory was $4,700.

a. Prepare journal entries for Transactions 1-5.

b. Determine the balance in Raw Material Inventory at the end of the month.

C. Determine the cost of the goods completed during April. If 10,000 simi¬ lar units were completed, what was the cost per unit?

d. What is the amount of underapplied or overapplied overhead at the end of April?

LO1.