Langston Company's August 31 inventory of raw materials is $84,000. Raw materials purchases in September are $530,000, and factory payroll cost in September is $354,000. Overhead costs incurred in September are: indirect materials, $60,000; indirect labor, $27,000; factory rent, $26,000; factory utilities, $14,000; and factory equipment depreciation, $47,000. The predetermined overhead rate is 50% of direct labor cost. Job 124 is sold for $450,000 cash in September. Costs of the three jobs worked on in September follow.

	Balances on August 31
	Direct materials	27,000		38,000
	Direct labor	22,000		16,000
	Applied overhead	11,000		8,000
	Costs during September
	Direct materials	140,000		208,000		105,000
	Direct labor	94,000		145,000		88,000
	Applied overhead	?		?		?
	Status on September 30	Finished (sold)		Finished (unsold)		In process

Part 1: Determine the overhead applied in September and the total costs for each job.

Part 2: Prepare journal entries for the month of September to record the following transactions.

a. Materials purchases (on credit).

b. Direct materials used in production.

c. Direct labor paid and assigned to Work in Process Inventory.

d. Indirect labor paid and assigned to Factory Overhead.

e. Overhead costs applied to Work in Process Inventory.

f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)

g. Transfer of Jobs 124 and 125 to Finished Goods Inventory.

h. Cost of goods sold for Job 124.

i. Revenue from the sale of Job 124.

j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account.