Instructions:

Prepare entries in a job order cost system and job cost sheets.M Manufacturing Company employs a job order cost accounting system and keeps

perpetual inventory records. Beginning job balances are recorded on the job cost sheets.

The following transactions occurred in January

$1-$ Assign direct materials and direct labor to jobs as follows.

Job No$\mathrm{.}25,$ Direct Material$=$$$5,000,$ Direct Labor$=$$$3,000$

Job No$\mathrm{.}26,$ Direct Material$=$$$17,000,$ Direct Labor$=$$$12,000$

Job No$\mathrm{.}27,$ Direct Material$=$$$13,000,$ Direct Labor$=$$$9,000$

$2-$ Manufacturing overhead was applied to jobs using a predetermined overhead rate based on

on $$22$ per direct labor hour. Hours worked are: Job $25-200$ hours; Job $26-800$ hours; Job $27-600$hours.

$3-$ Actual manufacturing overhead costs incurred during the month amounted to $$42,500.$

$4-$ Job $25$ and Job $26$ were completed during the month.

Instructions

$($a$)$ Prepare the journal entries to record the actual overhead costs that were paid in cash.

$($b$)$ Prepare the journal entries to record the assignment of direct materials, direct labor, and

manufacturing overhead costs to production.

$($c$)$ Total the job cost sheets for any job$($s$)$ completed during the month. Prepare the journal

entry $($or entries$)$ to record the completion of any job$($s$)$ during the month.

$($d$)$ What is the amount of over$-$ or underapplied overhead? Complete the journal entry.

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