3) Information for York Plastics as of December 31 follows. Prepare (a) the company's manufacturing statement for the year ended December 31; (b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Administrative salaries expense $135,000

Depreciation expense - Factory equipment 52,400

Depreciation expense - Delivery vehicles 36,200

Depreciation expense - Office equipment 24,800

Advertising expense 22,350

Direct labor 268,000

Factory supplies used 12,000

Income taxes expense 91,500

indirect labor 35,000

indirect material 24,000

Factory insurance 15,500

Factory utilities 14,000

Factory maintenance 7,500

Inventories

Raw materials inventories, January 1 32,000

Raw materials inventories, December 31 28,000

Goods in process inventory, January 1 33,780

Goods in process inventory, December 31 37,460

Finished goods inventory, January 1 56,970

Finished goods inventory, December 31 62,000

Raw materials purchases 325,000

Rent expense - Factory 50,000

Rent expense - Office space 24,000

Rent expense - Selling space 24,000

Sales salaries expense 97,500

sales 1,452,000

Sales discounts 29,000

------------------------------------------------------------------------------------------

4) Dina Corp uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the cost incurred:

Material Direct Labor Direct Labor

Job# Used Used Hours Used

1010 $45,000 $72,000 8,000

1011 59,000 77,000 7,000

1012 35,000 30,000 3,000

1013 26,000 40,000 5,000

The actual overhead costs were $55,800. The predetermined overhead allocation rate is $2.40 per direct labor hour. During the year, Jobs 1010,1012, and 1013 were completed. Also, Jobs 1010 and 1013 were sold for $387,000. Assuming that this is Dina's first year of operations:

(a) Make the necessary journal entries to charge the costs to the jobs started and to record the completion and sale of finished jobs.

(b) Calculate the balance in the goods in Process Inventory, Finished Goods Inventory, and Factory Overhead accounts. Does the Factory Overhead account balance an over- or underapplied overhead?