Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $46,000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Materials and equipment Job 27 Highlands Mall $16,875 Job 33 Pine Ridge Estates $ 53,500 Direct labor 14,500 26,750 Overhead (applied) 4,350 8,025 Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33, with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow. Job Materials and equipment Direct labor (wages payable) 27 33 34 35 $4,000 $5,800 $5,600 $3,900 5,500 7,750 6,900 2,600 Other May Events 1. Received $13,500 payment on Job 24 delivered to customer in April. 2. Purchased materials and equipment for $10,400 on account. 3. Billed Pine Ridge Estates $140,000 and received payment for $125,000 of that amount. 4. Determined that payroll for indirect labor personnel totaled $750. 5. Issued supplies and incidental materials for current jobs costing $255. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation). Property taxes Storage area rental Truck and delivery cost $650 775 420 Advertising and promotion campaign 700 Inspections 300 Telephone and other miscellaneous 425 Equipment depreciation 550 Required: a. Prepare journal entries to record the flow of costs for operations during May. b. Calculate the amount of over- or underapplied overhead for the month. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory. Required A Required B Required C Prepare journal entries to record the flow of costs for operations during May. (If no entry is required for a transaction/eve journal entry required" in the first account field.) View transaction list View journal entry worksheet A Record $13,500 payment received on account. Record purchase of materials and equipment of $10,400 on account. Record billing of $140,000. D Record receipt of $125,000 towards the billings. E Record indirect labor cost of $750. F Record issue of supplies and incidental materials for current jobs costing $255. G Record overhead, advertising and depreciation cost as Note : journal entry has been entered Required B > Debit Credit 13,500 13,500 10,400 10,400 140,000 Required A Required B Required C Prepare journal entries to record the flow of costs for operations during May. (If no journal entry required" in the first account field.) View transaction list View journal entry worksheet Record billing of $140,000. D Record receipt of $125,000 towards the billings. E Record indirect labor cost of $750. F Record issue of supplies and incidental materials for current jobs costing $255. G Record overhead, advertising and depreciation cost as per the table given above. H Record charges to work in process. I Record transfer of Job 33. Note : = journal entry has been entered Require