7.22 Journal entries for job costing LO2 At the beginning of the accounting period, the accountant for ABC Industries estimated that total overhead would be $80000. Overhead is allocated to jobs on the basis of direct labour cost. Direct labour was budgeted to cost $200 000 this period. During the period, only three jobs were worked on. The following summarises the direct materials and labour costs for each: Direct materials Direct labour Job 1231 $45 000 70 000 Job 1232 $70000 90 000 Job 1233 $30000 50 000 Job 1231 was finished and sold, job 1232 was finished but is waiting to be sold, and job 1233 is still in process. Actual overhead for the period was $82000. Required Prepare the following journal entries. (a) Cost recorded during production (b) Cost of jobs completed (c) Cost of sales (d) Allocation of overapplied or underapplied overhead allocated on a pro-rata basis to the ending balances in work in process, finished goods and cost of sales