(Journal entries) Olson Inc. produces custom-made trash containers for recycling waste. During June 1997, the following information was obtained relating to operations and production: 1. Direct material purchased on account, $190,000. 2. Direct material issued to jobs, $163,800. 3. Direct labor hours incurred, 3,400. All direct factory employees were paid $18 per hour. 4. Actual factory overhead costs incurred for the month totaled $82,200. This overhead consisted of $18,000 of supervisory salaries, $35,000 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 ma¬ terial was removed from the supplies account. 5. Overhead is applied to production at the rate of $25 per direct labor hour.

The beginning balances of Raw Material Inventory and Work in Process Inven¬ tory were $8,300 and $22,300, respectively. The ending balance in Work in Process Inventory was $4,700.

a. Prepare journal entries for the above transactions.

b. Determine the balances in Raw Material Inventory and Work in Process Inventory at the end of the month.

c. Determine the cost of the goods completed during June. If 2,000 similar units were completed, what was the cost per unit?

d. What amount of underapplied or overapplied overhead exists at the end of June?

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