44. (Journal entries, assigning costs to jobs) Alpha Mechanical uses a job order costing system. On September 1, 2002, the company had the following account balances:

Raw Material Inventory $ 332,400 Work in Process Inventory 1,056,300 Cost of Goods Sold 4,732,000 Work in Process Inventory is the control account for the job cost subsidiary ledger. On September 1, the three accounts in the job cost ledger had the following balances:

Job #75 $593,200 Job #78 316,800 Job #82 146,300 The following transactions occurred during September:

a. Prepare journal entries for the transactions for September 2002.

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.

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Sept. 1 4 15 Purchased $940,000 of raw material on account. Issued $950,000 of raw material as follows: Job #75, $43,800; Job #78, $227,800; Job # 82, $396,600; Job #86, $256,200; indirect material, $25,600. Prepared and paid the factory payroll for Sept. 1-15 in the amount of $368,500. Analysis of the payroll for Sept. 1-15 reveals the following information as to where labor effort was devoted: Job #75 Job #78 4,430 hours 11,160 hours Job #82 12,150 hours Job #86 5,540 hours Indirect wages $ 44,300 111,600 121,500 55,400 35,700 16 Alpha Mechanical applies manufacturing overhead to jobs at a rate of $7.50 per direct labor hour each time the payroll is made. 16 Job #75 was completed and accepted by the customer and billed at a selling price of cost plus 25 percent. 20 24 225 30 30 50 30 Paid the following monthly factory bills: utilities, $17,200; rent, $38,300; and accounts payable (accrued in August), $91,000. Purchased raw material on account, $412,000. Issued raw material as follows: Job #78, $74,400; Job # 82, $108,300; Job #86, $192,500; and indirect material, $27,200. Recorded additional factory overhead costs as follows: depreciation, $206,500; expired prepaid insurance, $35,100; and accrued taxes and licenses, $13,000. Recorded the gross salaries and wages for the factory payroll for Sept. 16-30 of $357,200. Analysis of the payroll follows: Job #78 Job #82 Job #86 Indirect wages 8,840 hours 11,650 hours 11,980 hours $ 88,400 116,500 119,800 32,500 30 Applied overhead for the second half of the month to jobs.