I need someone to look over my applied overhead over/under journal entries for question 3 on word doc. I have done the work and this seems right, the only thing that is confusing me is last instruction for question three advises that there is an "applied overhead of 9600.00".

ACCTG 404 Lesson 4 Assignment: Job-Order Costing Directions: Each question of this assignment should be prepared as a separate sheet in one Excel file. Please change the sheet names at the bottom of the page to the question number. Then, follow the directions for each question below. Be sure to show your calculations and label your work for full credit. This assignment is worth 50 points. The grading rubric may be previewed in the Job Order Costing Drop Box. Question 1 Custom Cabinets has decided to price their cabinets at 50% above cost. The problem is they are not sure how to assign Factory Overhead. Your manager has asked you to price the following two jobs based on the information provided: Estimated Factory Overhead for the year: $500,000 Estimated Direct Labor Hours for the year: 250,000 hours Job 1 has incurred $3,000 of Direct Materials and $2,000 of Direct Labor, which is consistent with 200 hours of labor Job 2 has incurred $3,500 of Direct Materials and $3,000 of Direct Labor, which is consistent with 300 hours of labor Question 2 A. Assuming Custom Cabinets applies $495,000 of Factory Overhead to all of their jobs this year, but has actual Factory Overhead of $496,000, has overhead been over or under applied? B. If the current COGS is $2,000,000, what should the ending COGS be after reconciling the Actual and Applied Overhead? Question 3 Prepare the journal entries needed based on the information below. Use Lesson 4 page 6 to assist you. Estimated Overhead for the month: $10,000 Estimated Direct Labor Hours: 10,000 Purchased $25,000 of materials Requisitioned $20,500 of materials to be placed into production Incurred $14,500 of Direct Labor during the month (1450 hours) Incurred the following Actual Factory Overhead Amounts: o Utilities: 7000 o Indirect Materials: 500 o Indirect Labor: 1000 o Rent: 1000 Completed 2 jobs with a cost of $10,900 Sold both jobs completed at a price = cost + 50% Applied Overhead is $9,600 Estimated Factory Overhead for the year: Extimated Direct Labor Hours for the Year: Job 1 Direct Materials Direct Labor Direct Labor Hours Job 2 Direct Materials Direct Labor Direct Labor Hours 500,000 250,000 3,000 2,000 200 3,500 3,000 300 PreDetermined Overhead Rate 2.00 per hr Apply Factory Overhead Job 1 Job 2 400 600 Total Costs Job 1 Job 2 What to Price Job 1 Job 2 5,400 7,100 8,100 10,650 A Overhead Applied Actual Overhead 495,000 496,000 Under Applied B Current COGS Under Applied Overhead Ending COGS 2,000,000 1,000 2,001,000 Estimated Overhead for the Month Estimated Direct Labor Hours Purchased Materials Requisitioned Materials for Production Incurred Direct Labor during the Month Labor Hours Incurred Actual Factory Overhead Utilities Indirect Materials Indirect Labor Rent Completed 2 jobs Cost Revenue Applied Overhead Predetermined Overhead Journal Entries Materials Inventory A/P 10,000 10,000 25,000 20,500 14,500 1,450 7,000 500 1,000 1,000 10,900 16,350 9,600 1.00 Debit Credit 25,000 25,000 Work in Process Inventory Materials Inventory 20,500 Work in Process Inventory Wages Payable 14,500 20,500 14,500 Work in Process Overhead Control 1,450 Overhead Control Utilities Payable Materials Inventory Indirect Labor Rent 9,500 1,450 7,000 500 1,000 1,000 Finished Goods Inventory Work in Process Inventory 10,900 A/R Sales COGS Finished Goods Inventory 16,350 10,900 16,350 10,900 10,900 COGS Overhead Control 8,050 8,050