Manor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory of materials and equipment is on hand at all times, so work can start as quickly as possible. Special equipment is ordered as required. On August 1, the Materials 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 August 1 with the following costs:

	Job 84	Job 87
Materials and equipment	$ 24,100	$ 79,800
Direct labor	21,300	40,400
Overhead (applied)	8,520	16,160

Overhead has been applied at 40 percent of the costs of direct labor using an annual rate.

During August, Manor Painting started two new jobs. Additional work was carried out on Jobs 84 and 87. Job 87 was completed and billed to the customer. Details on the costs incurred on jobs during August follow:

	Job 84	Job 87	Job 88	Job 90
Materials and equipment	$ 5,500	$ 8,200	$ 7,900	$ 5,400
Direct labor (wages payable)	8,800	11,100	9,900	3,400

Other August Events

1. Purchased materials and equipment for $15,100.
2. Billed $196,000 to the customer for Job 87 and received payment for $116,000 of that amount.
3. Received $19,600 payment on Job 82 delivered to customer in July.
4. Determined that payroll for indirect labor personnel totaled $2,300.
5. Issued supplies and incidental materials for current jobs costing $850.
6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation):

Property taxes	$ 1,000
Storage area rental	1,150
Truck and delivery cost	1,730
Advertising and promotion campaign	1,300
Inspections	1,000
Telephone and other miscellaneous	780
Equipment depreciation	2,820

Required:

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

Calculate the amount of over- or underapplied overhead for the month. This amount is debited or credited to Cost of Goods Sold.

Determine inventory balances for Materials and Equipment Inventory and Work-in-Process Inventory.

Just need #6 and overapplied overhead amount.

Calculate the amount of over- or underapplied overhead for the month. This amount is debited or credited to Cost of Goods Sold