Perry Company employs a job-order costing system. Only three jobs-Job #205, Job #206, and Job #207-were worked on during January and February. Job #205 was completed February 10; the other two jobs were still in production on February 28, the end of the company's operating year. Job cost sheets on the three jobs follow:

The following additional information is available:

a.Manufacturing overhead is assigned to jobs on the basis of direct labor cost.

b.	Balances in the inventory accounts at January 31 were as follows:

Required:

a.

Prepare T-accounts for Raw Material, Work in Process Inventory, Finished Goods Inventory, and Manufacturing Overhead Control. Enter the January 31 inventory balances given previously; in the case of Work in Process Inventory, compute the January 31 balance and enter it into the Work in Process Inventory T-account.

b.	Prepare journal entries for February as follows:

1.	Prepare an entry to record the issue of materials into production and post the entry to appropriate T-accounts. (In the case of direct material, it is not necessary to make a separate entry for each job.) Indirect materials used during February totaled $4,000.
2.	Prepare an entry to record the incurrence of labor cost and post the entry to appropriate T-accounts. (In the case of direct labor, it is not necessary to make a separate entry for each job.) Indirect labor cost totaled $8,000 for February.
3.	Prepare an entry to record the incurrence of $19,000 in various actual manufacturing overhead costs for February (credit Accounts Payable).

c.

What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Using this rate, prepare a journal entry to record the application of overhead cost to jobs for February (it is not necessary to make a separate entry for each job). Post this entry to appropriate T-accounts.

d.	As stated earlier, Job #205 was completed during February. Prepare a journal entry to show the transfer of this job off of the production line and into the finished good warehouse. Post the entry to appropriate T-accounts.

e. Determine the balance at February 28 in the Work in Process inventory account. How much of this balance consists of the cost of Job #206? Job #207?