$1.$ The following information applies to the Willoughby Company for the month. There are only two jobs $($A and B$)$ in production in the month.

a$.$ Purchased direct materials and indirect materials with the following summary of

receiving reports:

Material X $ $16,000$

Material Y $12,000$

Indirect materials $3,000$

Total $ $31,000$

b$.$ Issued direct and indirect materials with this summary of requisition:

Job A Job B Total

Material X $ $8,000$ $ $16,000$ $ $24,000$

Material Y $3,0008,00011,000$

Subtotal $ $11,000$ $ $24,000$ $ $35,000$

Indirect materials $39,000$

Total $ $74,000$

c$.$ Factory labor incurred is summarized by these time tickets:

Job A $ $22,000$

Job B $15,000$

Indirect labor $28,000$

Total $ $65,000$

d$.$ Factory utilities, factory depreciation and factory insurance incurred is summarized as follows:

Utilities $ $3,000$

Depreciation $18,000$

Insurance $2,500$

Total $ $23,500$

e$.$

Factory overhead costs were applied to jobs at the predetermined rate of $$46$ per machine hour. Job A incurred $1,100$ machine hours; Job B used $800$ machine hours.

f$.$ Job A was completed; Job B was still in process at the end of the month.

The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of the month.

Required:

$1.$ Calculate the total manufacturing cost for Job A and Job B for the month. Show your calculations in detail.

$2.$ Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment. Show your calculations in detail.