Question 1 Job Costing Journal Entries ABC Company uses a job-order costing system. The following data relate to January. the first month of the company's scal year: 1. Raw materials purchased on account. $960. 2. Raw materials issued to production, $9?2 ($852 direct materials and $120 indirect materials). 3. Direct labor cost incurred, $1560; indirect labor cost incurred, $1080. 4. Amortization on building and manufacturing equipment. $480. 5. Other manufacturing overhead costs incurred during January, $660 (credit accounts payable). 6. The company applies manufacturing overhead cost to production on the basis of 160% of direct manufacturing labor cost. 7. Production orders costing $4944 according to their job cost sheets were completed during January and transferred to finished goods. 8. Production orders that had cost $4824 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account for $9600. REQUIRED: 1. Prepare journal entries to record the preceding information. Number your entries. 2. Prepare the journal entry to dispose of the over- or under applied manufacturing overhead to Cost of Goods Sold