The following selected data were taken from the books of the ABC Company. It relates to the companys business for the month of January. The company uses a job order cost system to account for its manufacturing costs.

There were two jobs in process at the beginning of January Jobs 101 and 102. Following are the job cost sheets at January 1.

An examination of the ledger reveals the following account balances at January 1:

Raw materials$ 2,500

Work in process 10,000

Finished goods 2,000

During January the following took place:1.Purchase of materials $2,500.

2.Materials requisitioned from the store clerk as follows:Job 101$800102600103500Indirect materials 300

3.Factory payroll for the month totaled $4,300. Time tickets show the cost was incurred as follows:Job 101$1,2001021,4001031,500Indirect labor 200

4.Various overhead charges of $1,800 were incurred on account.

5.Factory overhead was applied at the same rate as the previous month. ACC 299Winter 2019Prof Graybeal

6.Depreciation of factory equipment of $1,200 was recorded.

7.Jobs 101 and 102 were completed during January.

8.Job 101 was sold on account on January 20 for $18,000. There were no other sales during January.

HINT: Look at the relationship between overhead and labor on the prior jobs to figure out the overhead application rate.

REQUIRED:Compute the following: __________1. Materials inventory balance, January 31.

__________2. Amount of factory overhead incurred during January.

__________3. Amount of factory overhead applied to jobs during January.

__________4. Cost of jobs finished during January.

__________5. Finished goods inventory, January 31.

__________6. Cost of goods sold in January.

$_________, _______ ________7.Amount of over or underapplied overhead. Indicate both amount and whether under or overapplied

Job #101 Job #102 Material Labor Overhead $2,200 Material 3,000 Labor 1,500 Overhead 1,000 500