Electronics Incorporated maintains its factory in Stillwater, Oklahoma, but has its main office in Tulsa. On September 1, the factory trial balance appeared as follows :Accounts Dr. Cr.Materials $ 19,500Work in Process 68,250Finished Goods 23,000Factory Overhead Control 540,000Factory Machinery 120,000Applied Factory Overhead $536,400Accumulated Depreciation Factory 36,000General Ledger 198,350Total $770,750 $770,750

The following transactions were completed during September:(a) Direct materials purchased on terms of 2/10, n/30, $120,000.(b) The factory payroll for $45,000 direct labor and $9,000 indirect labor was mailed to the home office. The home office payroll was $15,000 for sales salaries and $21,000 for office salaries. Employee payroll deductions were recorded at the home office at these rates: 6% of gross earnings for PICA tax; 18% of gross earnings for federal income tax.(c) Indirect materials and supplies amounting to $26,250 were purchased; terms 2/10, n/30.(d) Employer payroll tax expense is recorded on the home office books. State unemployment rate, 1.8%; federal unemployment, .5% ; PICA tax, 6%.(e) Analysis of the materials requisitions (all supplies are kept at the factory):Production orders $60,000Maintenance and repairs 15,000Shipping supplies 4,500(f) Defective shipping supplies returned to the vendor, $900.(g) Accounts payable totaling $142,500, including the accrued payroll, were paid,(h) Depreciation at an annual rate of 10% of the original cost was recorded on the factory machinery,(i) Sundry factory expenses of $6,900 were recorded as liabilities,(j) Pactory overhead was applied to production at the rate of $3 per direct labor hour; the factory worked 12,000 hours in September,(k) Goods completed with a total cost of $126,000 were transferred to finished goods.(1) Sales for September were $150,000 which cost $96,000 to produce,(m) At the end of September the factory overhead accounts are closed, and any over- or underapplied balance is closed to the cost of goods sold account.

Draw up the two factory overhead accounts; post applicable transactions therein and determine the over- or underapplied amount.

Required: Journal entries to record the above transactions on the general office books and on the factory books.