information for three different companies follows. Each company applies factory overhead at the rate of 45% of direct labor cost. In each scenario, the following entry was made to record the actual overhead costs:

Factory Overhead	133,000
Salaries Payable		70,000
Utilities Payable		40,000
Supplies		5,000
Accumulated Depreciation		18,000

Prepare a compound journal entry for each company to transfer raw materials to production, record direct labor costs on each job, and apply overhead at thepredetermined rate.

If the scenario involves underapplied or overapplied overhead, prepare an additional journal entry to transfer the amount to Cost of Goods Sold.

Company A Raw materials transferred to production totaled $110,000, and direct labor cost was

$225,500.

Company B Raw materials transferred to production totaled $170,000, and direct labor cost was

$140,000.

Company C Raw materials transferred to production totaled $990,000, and direct labor cost was

$225,000.

A.

company A	31,525	overapplied
company B	70,000	overapplied
company C	31,750	overapplied

B.

company A	31,525	underapplied
company B	70,000	underapplied
company C	31,750	underapplied

C.

company A	31,525	overapplied
company B	70,000	underapplied
company C	31,750	underapplied

D.

company A	31,750	underapplied
company B	70,000	underapplied
company C	31,750	underapplied

E.

company A	40,000	underapplied
company B	70,000	underapplied
company C	31,750	underapplied

F.

None of the above