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 $37,000. 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 Direct labor Overhead (applied) Job 27 Highlands Mall $15, 525 13,600 5, 440 Job 33 Pine Ridge Estates $ 52,600 26, 300 10,520 Overhead has been applied at 40 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 $3, 100 4, 600 33 $4,900 6, 850 34 $4, 700 6,000 35 $3,000 1, 700 Other May Events 1. Received $12,600 payment on Job 24 delivered to customer in April. 2. Purchased materials and equipment for $9,500 on account. 3. Billed Pine Ridge Estates $131,000 and received payment for $80,000 of that amount. 4. Determined that payroll for indirect labor personnel totaled $660. 5. Issued supplies and incidental materials for current jobs costing $165. 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 Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation $560 685 330 610 210 335 460 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/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 Cash 12,600 Accounts receivable 12,600 B 02 9,500 Materials and equipment inventory Accounts payable 9,500 Accounts receivable 131,000 Sales revenue 131,000 3b Cash 80,000 > Accounts receivable 80,000 E 04 660 Manufacturing overheadIndirect labor Wages payable 660 F 05 165 Manufacturing overhead Materials and equipment inventory 165 G 06 2.580 Manufacturing overhead Selling costs-Advertising Cash 610 OOOO 2,730 Accumulated depreciation 460 H 07 No journal entry required X 1 08 No journal entry required x Complete this question by entering your answers in the tabs below. 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/event, select journal entry required" in the first account field.) View transaction list Journal entry worksheet Record charges to work in process. Note: Enter debits before credits. Transaction General Journal Debit Credit 07 No journal entry required Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. 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/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet B D E F > Record transfer of Job 33. Note: Enter debits before credits. Transaction Debit Credit General Journal No journal entry required 08 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory. $ 30,635 Materials and equipment inventory Work-in-process inventory