3-7. Job order costing. Topper, Inc. had the following inventories on March 1: Finished goods Work in process Materials $15,000 19,070 14,000 The work in process account controls three jobs: Job 621 Job 622 Job 623 Materials Labor Applied factory overhead Total $2,800 $3,400 $1,800 2,100 2,700 1,350 1,680 2,160 1,080 $6,580 $8,260 $4,230 The following information pertains to March operations: (a) Materials purchased and received, $22,000; terms, n/30. (b) Materials requisitioned for production, $21,000. Of this amount, $2,400 was for indirect materials; the difference was distributed: $5,300 to Job 621; $7,400 to Job 622; and $5,900 to Job 623.1 (c) Materials returned to the storeroom from the factory, $600, of which $200 was for indirect materials, the balance from Job 622. (d) Materials returned to vendors, $800. (e) Payroll, after deducting 7% for FICA tax and 12% for employees' income tax, was $30,780. The payroll amount due the employees was paid during March. (f) Of the payroll, direct labor represented 55%; indirect labor, 20%; sales salaries, 15%; and administrative salaries, 10%. The direct labor cost was distributed: $6,420 to Job 621; $8,160 to Job 622; and $6,320 to Job 623. (g) An additional 13.2% was entered for employer payroll taxes, representing the employer's 7% FICA tax, 5.4% state unemployment insurance tax, and .8% federal unemployment insurance tax. Employer payroll taxes related to direct labor are charged to the factory overhead control account. (h) Factory overhead, other than any previously mentioned, amounted to $5,500. Included in this figure were $2,000 for depreciation of factory building and equip- ment and $250 for expired insurance on the factory. The remaining overhead, $3,250, was unpaid at the end of March. (i) Factory overhead applied to production: 80% of the direct labor cost to be charged to the three jobs based on the labor cost for March. (j) Jobs 621 and 622 were completed and transferred to the finished goods warehouse. (k) Both Jobs 621 and 622 were shipped and billed at a gross profit of 40% of the cost of goods sold. (1) Cash collections from accounts receivable during March were $69,450. Required: (1) Prepare job order cost sheets to post beginning inventory data. (2) Journalize the March transactions with current postings to general ledger inventory accounts and to job order cost sheets. (3) Prepare a schedule of inventories on March 31.