Steven's van service customises light trucks according to customers' orders. This month the entity workd on five jobs, numbered 207 to 211. Materials requisitions for the month were as follows:

JOb	Carpet	Paint	Electronics	Other	Total
207	$40	$350	$580		$970
208	75	200	375		650
209	200	400	200		800
210	30	150	770		950
211	60		50		110
Indirect				750	750
Total costs					$4230

An analysis of the payroll records revealed the following distribution of labour costs:

	Job
	207	208	209	210	211	Other	Total
Direct labour	$1400	1200	800	1700	400		5500
Indirect labour						2200	2200
Total Cost							$7700

Other overhead costs (consisting of rent, depreciation, taxes, insurance, utilities, ets) amouned to $3600. At the beginning of the period, management anticipated that overhead cost would be $6400 and total direct labour would amount to $5000. Overhead is allocated on the basis of direct labour dollars.

Job 207 to 210 were finished during the month; JOb 211 is still in process. Jobs 207 o 209 were picked up and paid for by customers. Job 210 is still in the lot waiting to be picked up.

Required

a./ Prepared the journal entries to reflect the incurence of materials, ;abour, and overhead costs; the allocation of overhead; and the transfer of units to finished goods and cos of sales.

b./ Close overrapplied or underapplied overhead to cost of sales.