I. Journalize the following transactions:

1. Madison Co. purchased $225,500 of raw materials on account.
2. Actual manufacturing overhead costs include:
   1. Utilities : $2,800
   2. Depreciation on equipment: $12,650
   3. Repairs on account: $3,200
   4. Rent paid, $6,000
   5. Insurance (prepaid policy): $3,350
3. Madison Co. issued $75,500 of material to Process A.
4. Assigned $18,000 is factory labor, of which $12,000 is indirect labor
5. Manufacturing Overhead costs are applied at 82% of material issued
6. Balance in WIP A is transferred to Process B
7. $51,000 of material is issued to Process B
8. Assigned $22,000 of factory labor, of which $15,000 is indirect labor
9. Manufacturing overhead costs are applied to Process B at a rate of 62.5% of material issued (to process B)
10. Actual manufacturing overhead costs paid totaled $39,500; manufacturing overhead costs charged to accounts payable totaled $1,500
11. Balance of Process B is transferred to Finished Goods
12. The cost transferred to finished goods included 62,500 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 13,250 units for $79,000 cash; they sold 4,125 units for $24,500 on account

Determine over or under-applied manufacturing overhead and prepare adjusting entry