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 $55,000. 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:

	Job 27 Highlands Mall			Job 33 Pine Ridge Estates
Materials and equipment	$	18,225		$	54,400
Direct labor		15,400			27,200
Overhead (applied)		6,160			10,880

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	27			33			34			35
Materials and equipment	$	4,900		$	6,700		$	6,500		$	4,800
Direct labor (wages payable)		6,400			8,650			7,800			3,500

Other May Events

1. Received $14,400 payment on Job 24 delivered to customer in April.
2. Purchased materials and equipment for $11,300 on account.
3. Billed Pine Ridge Estates $149,000 and received payment for $145,000 of that amount.
4. Determined that payroll for indirect labor personnel totaled $840.
5. Issued supplies and incidental materials for current jobs costing $345.
6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation):

Property taxes	$	740
Storage area rental		865
Truck and delivery cost		510
Advertising and promotion campaign		790
Inspections		390
Telephone and other miscellaneous		515
Equipment depreciation		640

Required:

a. Prepare journal entries to record the flow of costs for operations during May.