(Journal entries, cost flows) Custom Office Products Inc. began 1998 with three jobs in process:

During 1998, the following transactions occurred: 1. The firm purchased and paid for $266,000 of raw material. 2. Factory payroll records revealed the following:

® Indirect labor incurred was $27,000.

• Direct labor incurred was $301,400 and was associated with the jobs as follows:

3.Material requisition forms issued during the year revealed the following:
■ Indirect material issued totaled $38,000.
■ Direct material issued totaled $234,200 and was associated with jobs as follows: 4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted overhead of $120,000 and total direct labor cost of $300,000 for 1998. Actual total factory overhead costs (including indirect labor and indi¬ rect material) for the year were $122,200. 5. Jobs #147 through #155 were completed and delivered to customers, C.O.D. The revenue on these jobs was $1,132,387.

a. Prepare journal entries for all of the above events.

b. Determine ending balances for jobs still in process.

c. Determine cost of jobs completed, adjusted for underapplied or overapplied overhead.

LO1

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TYPE OF COST JOB NO. DIRECT MATERIAL DIRECT LABOR OVERHEAD TOTAL 147 151 $ 38,600 88,300 $ 45,700 $17,366 $101,666 104,900 39,862 233,062 153 72,700 84,800 32,224 189,724 Totals $199,600 $235,400 $89,452 $524,452