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

1.Purchased raw materials on account, $250,000.

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

Job 101 $30,000

Job 102 29,000

Job 103 40,000

$99,000

3. Factory labor costs incurred were $83,000 of which $70,000 pertained to factory wages payable and $13,000 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 $41,000

Job 102 37,000

Job 103 25,000

$103,000

5.Incurred manufacturing overhead costs as follows: indirect labor $10,000, indirect materials $8,000, and depreciation $11,000. Also, incurred $25,000 of manufacturing overhead costs on account.

6.Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 125% of direct labor costs.

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

8.Job 101 was sold on account for $140,000.

Instructions:

a.Prepare journal entries to record the above transactions.

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

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

d.Compute the amount of over/under applied overhead.