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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

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.
Direct
Materials Direct Labor
255,0003,000
2617,00012,000
2713,0009,000
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; Job 26-800; Job 27-600.
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.
Show your calculation
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