Ledger Accounts Covering Cost Accounting Cycle and Job Order Cost Accumulation. The books of Rio Grande Products Company show the following account balances as of March 1: LO1 FinishedGoods. $ 78,830 Work inProcess. 292,621 Materials. 65,000 Over- or Underapplied FactoryOverhead. 12,300 (Cr.)

The work in process account is supported by the following job order cost sheets:

Job Item Direct Materials Direct Labor Factory Overhead Total 204 80,000 Balloons

$ 15,230

$ 21,430

$ 13,800

$ 50,460 205 5,000 Life rafts 40,450 55,240 22,370 118,060 206 10,000 Life belts 60,875 43,860 19,366 124,101

$116,555

$120,530

$ 55,536

$292,621 During March, the following transactions occurred:

(a) Purchase of materials, $42,300.

(b) Purchase of special materials was $5,800 for new Job 207, which calls for 4,000 life jackets.

(c) Indirect labor cost was $12,480. Direct labor was as follows:

Job Amount Hours 204 $26,844 3,355.5 205 22,750 3,250.0 206 28,920 3,615.0 207 20,370 2,910.0

(d) Materials issued:

Job 204 Job 205 Job 206 Job 207

$ 9,480 11,320 10,490 16,640

* Excluding $5,800 of special materials, which are also issued at this time.

(e)Other factory overhead incurred or accrued (for brevity, credit the entire amount to Various Credits):

Insurance onfactory. $ 830.00 Tax on realestate. 845.00 Depreciation—machinery. 780.00 Depreciation—factorybuilding. 840.00 Light. 560.00 Coalused. 1,810.00 Power. 3,390.00 Repairs andmaintenance. 2,240.00 Indirectsupplies. 1,910.00 Miscellaneous. 15,256.87

(f) Factory overhead is applied at the rate of $2.30 per direct labor hour. An applied factory overhead account is used and is then closed to the overhead control account.

(g) Job 204 was shipped and billed at a contract price of $117,500.

Required:

(1) Construct ledger accounts, inserting beginning balances and entering transactions for March. (Factory over¬ head is to be posted to the control account only.)

(2) In itemized form, compute the total cost of each job at the end of March.

(3) Determine the amount of over- or underapplied factory overhead remaining in the overhead control account.