During September, Diana Company completed the following transactions.

Sept 1Direct materials costing $60,000 were purchased on account.

3Direct materials costing $32,850 were requested intoproduction (all were used on Job A).

4 Indirect materials were purchased for cash, $32,830.

8 The company issued checks for the following factory overhead costs: Utilities, $3,210; manufacturing insurance, $4,025; and repairs, $4,640

10Direct materials costing $34,510 (all used on Job A) and indirect materials costing $6,480 were requested into production.

15Recorded the following gross wages and salaries for employees: direct labor, $69,200 (all for Job A); indirect labor, $21,610; manufacturing supervision, $36,900; and sales commissions, $22,980.

15 Overhead was applied to production.

22 The company issued checks for the following factory overhead costs: utilities, $4,270; maintenance, $3,380; and rent, $3,250.

23 Direct materials costing $41,940 and indirect materials costing $8,260 were purchased.

27Production requisitioned $28,870 of direct materials (Job A, $2,660; Job B, $8,400; Job C, $17,810) and $7,640 of indirect materials.

30Recorded the following gross wages and salaries for employees: direct labor, $64,220 (Job A, $44,000; Job B, $9,000; Job C, $11,220); indirect labor, $30,290; manufacturing supervision, $28,520; and sales commissions, $36,200.

30 Manufacturing overhead was applied to production.

30 Jobs A (58,840 units) and B (3,525 units) were completed and transferred to finished goods inventory. (Computeunit cost for each job; round to nearest cent).

30 Job A was shipped to the customer and the customer was billed for the sale. It is Diana's practice to charge 40% over cost of production to allow adequate gross profitto cover period costs and profit. The company uses a perpetual inventory system.

30 Adjusting entries for the following were recorded: $4,680 for depreciation, factory equipment; $5,230 for property taxes for factory, payable at month end.

Manufacturing overhead is applied at a rate of 125 percent of direct labor cost.

a. Record the entries in journal form and post to the following T-Accounts: Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Overhead, Cash, Accounts Receivable, Accumulated Depreciation Manufacturing Equipment, Accounts Payable, Wages and Salaries Payable, Property Taxes Payable, Sales, Cost of Goods Sold, and Selling and Administrative Expenses.

b. Compute ending balances in Materials, Work-in-process, Finished Goods, and Factory Overhead.

c. Make the journal entry to dispose of under/over applied overhead and post to the T-accounts.

5. The following applies to Donte Corporation for the month of September. All materials are added at the beginning of the production process and the company uses FIFO.

Beginning Inventory

2,350 units, 40% complete

Direct Materials$7,200

Conversion$1,100

Current Months Data

10,120 units started

Direct Materials$51,612

Conversion$53,904

Ending Inventory

1,000 units, 70% complete

a. Compute equivalent units of production for September.

b. Compute unit costs for September.

c.Compute the cost of transferred production.

d.Compute the cost of ending work in process being sure to show how much of the cost is materials and how much of the cost is conversion.

e. Now assume that the 10,120 units that were started had $101,200 of costs already attached to them from the previous department. How would this change your answer to parts c and d? Show the computation for each.