Malibu Boats Inc. uses a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

Purchased raw materials on account, $160,000.

2. An analysis of the requisitions shows the following: Direct materials

requisitioned during the month:

Job 101 $25,000

Job 102 19,000

Job 103 30,000

$74,000

Factory labor costs incurred were $85,000 of which $71,000 pertained

to factory wages payable and $14,000 pertained to employer payroll taxes payable.

4. An analysis of the time tickets indicated the following: Direct labor

incurred and charged to jobs during the month was:

Job 101 $31,000

Job 102 27,000

Job 103 22,000

$80,000

Incurred manufacturing overhead costs as follows: indirect labor $11,000, indirect materials $6,000, and depreciation $9,000. Also, incurred $65,000 of manufacturing overhead costs on account.

Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 101% of direct labor costs.

Job 101 and Job 103 were completed during the month. (Note: show your work in part b. below.)

Job 101 was sold on account for $107,000.

Instructions:

Prepare journal entries to record the above transactions.

Compute the cost of Job 101, Job 102 and Job 103.

Compute the balance in the Work-in-Process account at the end of the month.

Compute the amount of over/under applied overhead.