(Journal entries, assigning costs to jobs) Alpha Mechanical uses a job-order costing system. On September 1, 2002, the company had the following account

balances:

Raw Material Inventory $ 332,400

Work in Process Inventory 1,056,300

Cost of Goods Sold 4,732,000

Work in Process Inventory is the control account for the job cost subsidiary

ledger.

On September 1, the three accounts in the job cost ledger had the following balances:

Job #75 $593,200

Job #78 316,800

Job #82 146,300

The following transactions occurred during September:

Sept. 1 Purchased $940,000 of raw material on the account.

Sept. 4 Issued $950,000 of raw material as follows:

Job #75, $43,800;

Job #78, $227,800;

Job #82, $396,600;

Job #86, $256,200;

indirect material, $25,600.

Sept. 15 Prepared and paid the factory payroll for Sept. 1-15 in the

amount of $368,500. Analysis of the payroll for Sept. 1-15 reveals

the following information as to where labor effort was devoted:

Job #75 4,430 hours $ 44,300

Job #78 11,160 hours 111,600

Job #82 12,150 hours 121,500

Job #86 5,540 hours 55,400

Indirect wages 35,700

Sept. 16 Alpha Mechanical applies manufacturing overhead to jobs at a

rate of $7.50 per direct labor hour each time the payroll is made.

Sept. 16 Job #75 was completed and accepted by the customer and billed

at a selling price of cost plus 25 percent.

Sept.20 Paid the following monthly factory bills: utilities, $17,200; rent,

$38,300; and accounts payable (accrued in August), $91,000.

Sept. 24 Purchased raw material on account, $412,000.

Sept. 25 Issued raw material as follows: Job #78, $74,400; Job #82,

$108,300; Job #86, $192,500; and indirect material, $27,200.

Sept. 30 Recorded additional factory overhead costs as follows:

depreciation, $206,500; expired prepaid insurance, $35,100; and

accrued taxes and licenses, $13,000.

Sept. 30 Recorded the gross salaries and wages for the factory payroll for

Sept. 16-30 of $357,200. Analysis of the payroll follows:

Job #78 8,840 hours $ 88,400

Job #82 11,650 hours 116,500

Job #86 11,980 hours 119,800

Indirect wages 32,500

Sept. 30 Applied overhead for the second half of the month to jobs.

a. Prepare journal entries for the transactions for September 2002.

b. Use T-accounts to post the information from the journal entries in part (a)

to the job cost subsidiary accounts and to general ledger accounts.

c. Reconcile the September 30 balances in the subsidiary ledger with the

Work in Process Inventory account in the general ledger.

d. Determine the amount of underapplied or overapplied overhead for September