Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the companys inventory on December 2 for $ 5,094; on December 8 for $ 1,056; and on December 14 for $ 3,468. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52. Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $ 15.5 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52. The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2,115 hours, and the anticipated overhead costs are $ 854,460 for the year. The machines were used by workers on projects K52 and J57 on December 3, 9, and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project J57 (2.5 the first day and 3 each of the other days). Both of these special orders were completed on December 15, producing 200 sprinkler heads for J57 and 100 sprinkler heads for K52. Additional job order activities during this period included:

Dec.	1		Purchased raw materials from Marigold Supply Company on account for $ 53,400.
Dec.	2		Issued $ 40,300 of direct materials from the companys inventory to jobs other than K52 and J57 and $ 3,100 of indirect materials.
Dec.	12		Paid Waterways factory salaries and wages for $ 65,500.
Dec.	13		Paid the factorys water bill of $ 9,100.
Dec.	18		Transferred $ 50,200 of costs from other completed jobs to finished goods.
Dec.	21		Paid the factorys electric bill of $ 12,000 for Waterways factory.
Dec.	31		Made adjusting entries forth factory that included accrued property taxes of $ 12,100, prepaid insurance of $ 8,700, and accumulated depreciation of $ 16,000.

Journalize the activities from these job cost sheets in the general journal. Also, journalize the other costs that occurred during this period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

12/1

Raw Materials inventory

53400

Accounts Payable

53400

12/2

Work in process inventory

Raw materials inventory

(to assign materials to jobs J57&K52)

12/2 Work in process inventory

manufacturing overhead

Raw materials inventory

(To assign materials to jobs and overhead)

12/3

Work in process inventory

Factory Labor

(to assign labor to jobs J57 & K52)

12/3

Work in process inventory

Manufacturing overhead

(to assign overhead to jobs J57&K52)

12/8

Work in process inventory

Raw Materials inventory

12/9

Work in process inventory

Factory Labor

(to assign labor to jobs J57 & K52)

12/9

Work in process inventory

manufacturing overhead

(to assign overhead to jobs J57&K52)

12/12

Factory Labor

Cash

12/13

Manufacturing Overhead

Cash

12/14

Work in process inventory

Raw Materials Inventory

12/15

Work in process inventory

Factory Labor

(to assign labor to jobs J57&K52)

12/15

Work in process inventory

Manufacturing Overhead

(to assign overhead to jobs J57&K52)

12/15

Finished goods inventory

Work in process inventory

(to record completion of jobs J57&K52)

12/18

Finished goods inventory

Work in process inventory

12/21

Manufacturing overhead

Cash

12/31

Manufacturing Overhead

Property tax payable

prepaid insurance

Accumulated depreciation-Equipment

16000

Part C: Assuming that Manufacturing overhead has a debit balance of $3600, determine whether overhead has been under/over applied and make the adjusting entry.