Job Order Costing: T Account Analysis P7. Rhile Industries, Inc., produces colorful and stylish uniforms to order. During Sep- tember 2014, Rhile completed the following transactions: Sept. 1 Purchased direct materials on account, $59,400. ,4 ead 3 Requested direct materials costing $26,850 for production (all for Job A). 4 Purchased indirect materials for cash, $22,830. 8 Issued checks for the following overhead costs: utilities, $4,310; manufactur- ing insurance, $1,925; and repairs, $4,640. Continued) Chapter 18: Costing Systems: Job Order Costing Requested direct materials costing s29,510 (all used on Job A) and indirect materials costing $6,480 for production 15 Recorded the following gross wages and salarics for employees: direct labor, Job A); indirect labor, S31,610; manufacturing supervision $62,900 (all for S26,900; and sales commissions, $32,980. pplied overhead to production at rae of 120 percent of direct labor cost, aid the following overhead costs: utilities, $4,270; maintenance, $3,380 and rent, $3,250 Recorded the purchase on account and receipt of $31,940 of direct materials rect materials (Job A, $2,660; Job B, $8,400; Job 23 and $9,260 of indirect materials. Requested $28,870 of di 27 C, $17,810) and $7,640 of indirect materials for pr Recorded the fo llowing gross wages and salaries for employees: direct labor. manufacturing supervision, $28,520; and sales commissions, overhead to production at a rate of 120 percent of direct labor cost 30 S64,220 Job A, $44,000; Job B, S9,000; Job C, $11,220); indirect labor $36,200 ompleted and transferred Job A (58,840 units) and Job B (3,525 units) to inished goods inventory; total cost was $322,400. 30 Shipped J ob A to the customer; total production cost was $294,200, and sales price was $418,240 the following adjusting entries: $2,680 for depreciation-manu- facturing equipment; and $1,230 for property taxes, manufacturing, payable at month end REQUIRED accounts for the following: Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Overhead, Cash, Accounts Receivable, Accumulated Depreciation- Manufacturing Equipment, Accounts Payable, Payroll Payable, Property Taxes Pay- able, Sales, Cost of Goods Sold, and Selling and Administrative Bxpenses. Prepare job order cost cards for Job A, Job B, and Job C. Determine the partial account 1. Record the entries for all Rhile's transactions in September using alances. Assume no beginning inventory balances. Assume also that when payroll was recorded, entries were made to the Payroll Payable account 2. Compute th e amount of underapplied or overapplied overhead for September and transfer it to the Cost of Goods Sold account. 3. ACCOUNTING CONNECTION Why should the Overhead account's underapplied or overapplied overhead be transferred to the Cost of Goods Sold account