Power Ltd. builds custom mini homes and trailers for various customers. At the start of January 2020, Power Ltd. had the following jobs and related costs in its beginning work-in-process:

Job A1: $ 12,000

Job B2: $ 8,000

During January, two more jobs were started: Jobs C3 and D4. Jobs A1 and B2 were completed and sold. Job C3 is still in process and Job D4 was completed but not yet sold. There were no jobs in beginning finished goods inventory on January 1.

The following partially completed job cost sheets have been created for you. They summarize the jobs worked on during January:

	Job A1	Job B2	Job C3	Job D4	Total
Beginning work-in-process	$ 12,000	$ 8,000	N/A	N/A	$ 20,000
Direct materials used	$ 2,000	$ 20,000	$1,000	$4,000	$ 27,000
Direct labour incurred	$ 1,000	$ 5,000	$1,000	$3,000	$ 10,000

Overhead is applied at a rate of $2 per direct labour dollar incurred. There was $25,000 of raw materials inventory on hand at the start of the period.

Raw material purchases during the period amounted to $20,000. Actual manufacturing overhead costs incurred during the month were $18,000.

Required:

a) Determine the total cost for each job and calculate totals for cost of goods sold, ending work-in-process inventory and ending finished goods inventory.

b) What is the balance in ending raw materials inventory?

c) Was manufacturing overhead overapplied or underapplied? By how much?

d) Provide all of the journal entries during the month that affected the work-in-process and finished goods inventory accounts.