Hooper Manufacturing Company employs a job-order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

1. Direct materials requisitioned during the month:

Job 56$11,000

Job 575,000

Job 5812,000

$28,000

1. Direct labour incurred and charged to jobs during the month was:

Job 56$21,000

Job 5715,000

Job 5810,000

$46,000

1. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 75% of direct labour costs.
2. Actual manufacturing overhead costs incurred during the month amounted to $41,000.
3. Job 57 consisting of 1,500 units and Job 58 consisting of 400 units were completed during the month.

Instructions

1. Prepare journal entries to record the above transactions.
2. How much manufacturing overhead was applied to Job 58 during the month?
3. Calculate the unit cost of Jobs 57 and 58.

4.What is the balance in Work in Process Inventory at the end of the month?

5. Determine if manufacturing overhead was under- or over-applied during the month. By how much?