The G0-Magic company uses job-order costing system. The following data relate to the first quarter of the companys fiscal year

a. Materials requisitioned for production cost $550,000 [ direct materials and indirect materials are proportioned by 6:2].

b. Utility costs incurred are $75,000

c. Raw Materials purchased on cash $450,000

d.

Salaries $ Indirect Labour 125,000 Direct Labour 250,000 Selling Commission 140,000 Admin Salaries 200,000

e. Marketing cost incurred is $120,000 f. Prepaid insurance expired during this period $170,000.[ 75% belongs to the factory and the rest to the admin] g. Rental expense for the factory is $80,000 and rent for the shop is $25,000 h. Supplies cost incurred during the month is $12,000 [on account] i. Use the information below to find the Predetermined Rate using machine hours as the cost driver

$ Budgeted Overhead 176,000 Budgeted machine hours 51,000 hours Actual machine hours 60,000 hours Actual overhead 242,000 j. Journalize the applied cost used in section (i) k. Goods costing to produce =$3,400,000 were completed during the quarter l. Cash Sales was $1,200,000. Cost to produce it was $800,000 m. Cash paid to supplier was $9,500

n. $25,000 Cash was paid for Bank Loans REQUIRED 1. Prepare Journal entries for the quarter 2. Is production cost underallpied or overapplied?