$2$ Computing costs of jobs, preparing Journal entries and making correction of over or under allocation of MOH $(6+3+10=19$ points$)$

Smith Inc. was working on three jobs during during the current month: Job $20,21$ and $22.$

The job costs sheets of these three jobs shows the following information:

The actual manufacturing overhead costs incurred were $$12,800.$ Smith applies the manufacturing overhead

based on the direct labor costs using a predetermined overhead rate of $70\%$ of the direct labor costs.

During the month, Job $20$ and $21$ was completed and Job $20$ was sold for $$32,000$ on account.

Complete the job costs sheets using the template below:

Compute the over or under applied overhead if any.

Provide journal entries to record the following:

i$)$ Use of direct material costs,

ii$)$ Incurring direct labor costs,

iii$)$ Application of MOH $,$

iv$)$ Incurring actual MOH $,$

v$)$ Completion of Jobs $20$ and $21$ and

vii$)$ Sales and delivery of Job $20$ to the customer.

viii$)$ Closing MOH balance to COGS account