The Premier Manufacturing Company uses a job order costing system. The following datarelate to the month of May:

a). Raw materials purchased with cash $80,000.
b). Direct materials issued to production, $79,000.
c). Indirect materials issued to production, $2,500.
d). Direct labor cost incurred, $61,000.
e). Additional actual manufacturing overhead costs totaled incurred $68,000 for the month(credit Accounts Payable).
f). Overhead is applied on a basis of per machine-hour. Estimated total overhead is$80,000, and estimated total machine hours is 40,000. In May, 25,000 machine hourswere recorded.
g). Depreciation expense for factory equipment is $2,000 and office furniture is $1,500.
h). Production orders costing $200,000 were completed during the month.
i). During the month, sales invoiced were $94,500. The company uses a 35% mark-upabove cost.

Required:
1. Prepare journal entries to record the information above.
2. Compute the ending balance of work in process. The beginning balance was $15,000.
3. Compute the over applied or under applied manufacturing overhead.