Journal entries; assigning costs to jobs; cost accumulation Talani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: Raw Material Inventory $465,360 Work in Process Inventory 2,117,640 Cost of Goods Sold 6,809,600 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $820,960 Job #78 373,240 Job #82 923,440 The following transactions occurred during September: 09-01 Purchased $2,716,000 of raw material on account. 09-04 Issued $2,660,000 of raw material as follows: Job #75, $405,440; Job #78 $353,640 Job #82, $1,389,080: Job #86, $437,360; and indirect material, $74,480 09-15 Prepared and paid the $1,059,800 factory payroll for September 1-15. Analysis of this payroll showed the following information: Hours Dollars Job #75 13,524 $118,440 Job #78 36,848 374,080 Job #82 28,420 284,200 Job #86 14,392 155,120 Indirect labor wages 127,960 09-15 On each payroll date, lalani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour. 09-15 Job #75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar. 09-20 Paid the following monthly factory bills: utilities, $55,440 : rent $98,840; and accounts payable (accrued in August), $275,520. 09-24 Purchased raw material on account, $873,600. 09-25 Issued $1,002,960 of direct material as follows: Job #78, $216,720; Job #82, $297,640; Job #86, $488,600; indirect material issued was $78,120. 09-30 Recorded additional factory overhead costs as follows: depreciation, $1,132,600; expired prepaid insurance, $231,560, and accrued taxes and licenses, $325,360. 09-30 Recorded and paid the factory payroll for September 16-30 of $1,000,160. Analysis of the payroll follows: Hours Dollars Job #78 12,516 $248,360 Job #82 19,110 319,760 Job #86 13,972 341,040 Indirect labor wages 91,000 09-30 Applied overhead for the second half of the month to jobs. a. Journalize the September transactions. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Debit 2716000 0 Credit 0 2716000 0 2585520 74480 0 0 2660000 Account 09-01 Raw Material Inventory Accounts Payable To record raw materials purchased on account 09-04 Work in Process Inventory Manufacturing Overhead Raw Material Inventory To record the direct materials issued 09-15 Work in Process Inventory Manufacturing Overhead Cash To record labor costs 09-15 Work in Process Inventory Manufacturing Overhead To record applied overhead 931840 0 127960 0 1059800 . 1164800 0 0 1164800 11110 - e 0 0 1111 0 0 0 0 0 0 0 urse TUTECOTOOPPTIC OVEMU 09-15 Finished Goods Inventory Work in Process Inventory To record completed jobs 09-15 Accounts Receivable Sales To record sales 09-15 Cost of Goods Sold Finished Goods Inventory To record the cost of sales 09-20 Accounts Payable Sales Cash To record miscellaneous payments 09-24 Raw Material Inventory Accounts Payable To record purchase of raw materials 09-25 Work in Process Inventory Manufacturing Overhead Raw Material Inventory To record the direct materials issued 09-30 Manufacturing Overhead Accumulated Depreciation Prepaid Insurance Taxes & Licenses Payable To record additional factory overhead 09-30 Work in Process Inventory Manufacturing Overhead Cash 0 . 0 0 0 0 0 0 0 0 0 0 0 0 0 > 0 0 b. Use T-accounts to post the information from the journal entries in (a) to the job cost subsidiary accounts and to general ledger accounts. 0 Bal. 9/1 9/24 Work in Process Inventory 09/15 0 0 Raw Material Inventory 0974 09/25 0 0 0 0 0 0 0 Bal. 9/4 9/15 9/15 9/25 9/30 9/30 Bal. 0 Bal. 0 0 Cost of Goods Sold 0 Bal. Job 75 0 Completed 0 Bal. Job 75 0 0 0 DM DL OH 0 0 0 0 0 0 0 0 0 0 Bal. 0 Bal. 0 Bal. Job 78 o Completed 0 0 DM DL 0 0 OH DM 0 DL 0 OH 0 Bal. 0 Job 82 0 Completed 0 0 0 0 Bal. DM DL OH DM DL OH Bal. 0 0 0 0 Job 86 o Completed 0 DM DL OH 0 0 DM 0 DL OH Bal. 0 c. Reconcile the September 30 balances in the subsidiary ledger with the Work in Process Inventory account in the general ledger. Schedule of Job Cost Records September 30 Job #78 Job #82 Job #86 Total $ 0 0 0 $ 0 d. Determine the amount of underapplied or overapplied overhead for September, Note: Do not use a negative sign with your answer. $ 0