7Ledger Accounts Covering Cost Accounting Cycle and Job Order Cost Accumulation The books of Smythe Company show the following acccunt balances as of March 1: 78,830 292,621 65,000 12,300 (Cr Finished Goods Work in Process Materials Exercise 2 Over- or Underapplied Factory Overhead The work in process account is supported by the foliowing job order cost sheets: Factory Overhead S Direct Direct Materials 15,230 40,450 60.875 116.555 Total 50,460 118,060 124,101 292,621 Labor 21,430 55,240 43,860 Item 80,000 Balloons 5,000 Life rafts 10,000 Life belts Job 204 205 206 13,800 22,370 19.366 55,536 120,530 During March, the following transactions occurred: (a) Purchase of materials, $42,300. (b) Purchase of special materials was $5,800 for new Job 207, which calls for 4,000 jackets. (c) Indirect labor cost $12,480. Disect labor was as follows: was Job 204 205 206 207 Amount $26,844 22,750 28,920 20,370 Hours 3,355.5 3,250.0 3,615.0 2,910.0 (d) Materials issued Job 204 Job 205 Job 206 Job 207 Excluding $5,800 of special materals, which are also issued at this time $ 9,480 11,320 10,490 16,640 Exercise 2 [cont'd] (e) Other factory overhead incurred or accrued (for brevity, credit the entire amount Various Credits): $ 830.00 845.00 780.00 840.00 560.00 1,810.00 3,390.00 2,240.00 1,910.00 15,256.87 Insurance on factory Tax on real estate Depreciation-machinery Depreciation-factory building Light Coal used Power Repairs and maintenance Indirect supplies Miscellaneous . () Factory overhead is applied at the rate of $2.30 per direct labor hour. An applied factory overhead account is used and is then closed to the overhead control account. (g) Job 204 was shipped and billed at a contract price of $117,500. Required: (I) Construct ledger accounts, inserting beginning balances and entering transactions for March. (Factory overhead is to be posted to the control account only.) (2) In itemized form, compute the total cost of each job at the end of March (3) Determine the amount of over- or underapplied factory overhead remaining in the overhead control account