Pocalla Inc.'s April 30 inventory of raw materials is $103,000. Raw materials purchases in May are $550,000 and factory payroll cost in May is $392,000. Overhead costs incurred in May are indirect materials, $60,000; indirect labor, $35,000; factory rent, $30,000; factory utilities, $26,000; and factory equipment depreciation, $55,000. The predetermined overhead rate is 60% of direct labor cost. Job 401 is sold for $650,000 cash in May. Costs of the three jobs worked on in May are as follows:

Job 401

Job 402

Job 403

Balances On April 30

Direct Materials

$53,000

$42,000

Direct Labor

$25,000

$17,000

Applied Overhead

$13,000

$9,600

Cost During May

Direct Materials

$145,000

$205,000

$110,000

Direct Labor

$105,000

$152,000

$106,000

Applied Overhead

?

?

?

Status On May 31

Finished - Sold

Finished - Unsold

In Process

1. Determine the total of each production cost incurred for May (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from April 30).
2. Prepare the journal entries for the following:

• Materials purchases (on credit).
• Direct materials used in production.
• Direct labor paid and assigned to Work in Process Inventory.
• Indirect labor paid and assigned to Factory Overhead.
• Overhead costs applied to Work in Process Inventory.
• Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
• Transfer of Jobs 401 and 402 to Finished Goods Inventory.
• Cost of goods sold for Job 401.
• Revenue from the sale of Job 401.
• Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)