Use the following information for the next 4 questions:

A company uses job order costing to determine the cost of each job. The following info relates to job information:

In May, the company incurred the following costs for Job 123: direct materials $10,000, direct labor $6,000 and took 300 hours while the factory overhead applied $4,800.

In June, the company incurred $5,000 in direct materials, $3,000 in labor in order to complete and sell Job 123.

Additionally in June, the company started and completed Job 456. Employee timesheets showed that 150 direct labor hours were worked, and the job cost sheet showed the total cost of Job 456 was $12,750.

Information on the factory overhead account showed that factory overhead is applied based on direct labor cost. Actual overhead costs for the month of June are $15,000 which was spent on utilities. It is company practice to close the factory overhead account monthly and it considers any factory overhead to be immaterial.

During June, the company made payments of $20,000 towards their accounts payable. On May 31st, the balance in the accounts payable account was $5,000 and as of June 31st the balance was $3,500.

The company had an opening balance of raw materials and finished goods of $50,000.

1. What is the balance of raw materials as of June 30th? a. $25,100 b. $56,100 c. $32,500 d. $43,850 e. None of the above.

2. What is the balance of work in process as of June 30th? a. $12,750 b. $31,200 c. $45,000 d. $62,750 e. None of the above.

3. What is the balance of finished goods as of June 30th? a. $12,750 b. $31,200 c. $45,000 d. $62,750 e. None of the above.

4. Is overhead over or under applied, and by how much? a. Over applied by $7,800. b. Under applied by $9,800. c. Over applied by $15,000. d. Under applied by $10,200. e. None of the above.