Watkins Machinery Company uses a normal job costing system. The company has the following partial trial balance information for March, the last month of its fiscal year:

Materials inventory $($X$,$ $$4,500$; Y$,$ $$3,000$; Indirect materials, $$7,500)$ $ $15,000$

Work$-$in$-$process inventory $($this is Job $101)8,400$

Finished goods inventory $($this is Job $100)14,000$

These transactions relate to the month of March:

Purchased direct materials and indirect materials with the following summary of receiving reports:

Material X $ $15,000$

Material Y $15,000$

Indirect materials $7,500$

Total $ $37,500$

Issued direct materials and indirect materials with this summary of requisitions:

Job $101$ Job $102$ Total

Material X $ $7,500$ $ $4,500$ $ $12,000$

Material Y $6,0003,0009,000$

Subtotal $ $13,500$ $ $7,500$ $ $21,000$

Indirect materials $12,000$

Total $ $33,000$

Factory labor incurred is summarized by these time tickets:

Job $101$ $ $16,800$

Job $10211,200$

Indirect labor $7,500$

Total $ $35,500$

Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows:

Utilities $ $750$

Depreciation $22,500$

Insurance $3,750$

Total $ $27,000$

Factory overhead costs were applied to jobs at the predetermined rate of $$15$ per machine hour. Job $101$ incurred $1,800$ machine hours; Job $102$ used $1,200$ machine hours.

Job $101$ was completed; Job $102$ was still in process at the end of March.

Job $100$ and Job $101$ were shipped to customers during March. Both jobs had gross margins of $20\%$ based on manufacturing cost.

The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March.

Required:

$1.$ Prepare journal entries to record the transactions for the events from parts $($a$)$ through $($g$).$

$2.$ Compute the ending balance of the Work$-$in$-$process inventory account.

$3.$ Compute the overhead variance and indicate whether it is overapplied or underapplied.

$4.$ Close the overhead variance to the Cost of goods sold account.Complete this question by entering your answers in the ta

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Compute the ending balance of the Work$-$in$-$process inventory acc

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