Problems 1. Avaya uses a job costing system. The March cost data were as follows: Raw materials purchased on credit $ 400,800 Direct labour costs 417,250 Raw materials issued to production 368,030 Actual manufacturing overhead costs 319,680 Cost of goods manufactured 1,135,700 Sales {all on credit} 1,351,200 Machine hours for March were 65,000 hours, and the business applies overhead to production at a rate of $6.00 per machine hour. The beginning raw materials inventory was $46,030. The beginning work in process inventory was $75,870. The beginning and ending nished goods inventories were $121,300 and $100,560 respectively. Required: a) Prepare general journal entries to record the March transactions. b) Was overhead overapplied or underapplied for the month of March? c) Calculate the ending balances of raw materials and work in process. (Hint: Prepare T accounts for inventories.)