Figure 5-14 Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows:

	Job #683		Job #684		Job #685		Job #686		Job #687
Direct materials	$11,000		$8,000		$31,400		$16,700		$6,000
Direct labor	$21,000		$6,000		$12,300		$8,450		$2,500

Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process.

Problem 5-23

Refer to Figure 5-14.

Prepare the journal entries to record the following:

The actual overhead for December was $41,100

Requisitioning of raw materials

Direct labor costs

Applied overhead

Transfer to finished goods

Sale of finished goods (assume sale was made on account)

Closing underapplied/overapplied variance (all variances are immaterial)

A
B
C
D
E-cost
E-sale
F