Madison Company uses a job-order costing system. The following transactions occurred in October:

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
3. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000.
4. Depreciation recorded on factory equipment, $40,000.
5. Other manufacturing overhead costs accrued during October, $70,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October.
7. Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finish Goods.
8. Jobs that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost.

Required:

1. Post the relevant transactions from above to each T account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

Is the Manufacturing Overhead account over or under applied and by how much

Provide the Ending Balance for Each T-Account

Raw Materials Inventory BLANK-1 DEBIT

Work in Process Inventory BLANK-2 DEBIT

Manufacturing Overhead BLANK-3 CREDIT

Finished Goods Inventory BLANK-4 DEBIT

Accounts Receivable BLANK-5 DEBIT

Accumulated Depreciation BLANK-6 CREDIT

Accounts Payable BLANK-7 CREDIT

Salary Payable BLANK-8 CREDIT

Sales Revenue BLANK-9 CREDIT

Cost of Goods Sold BLANK-10 DEBIT