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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

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,$11,250;Y,$7,500; Indirect materials, $18,750) $37,500
Work-in-process inventory (this is Job 101)19,200
Finished goods inventory (this is Job 100)32,000
These transactions relate to the month of March:
a. Purchased direct materials and indirect materials with the following summary of receiving reports:
b. Issued direct materials and indirect materials with this summary of requisitions:
c. Factory labor incurred is summarized by these time tickets:
d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows:
e. Factory overhead costs were applied to jobs at the predetermined rate of $15 per machine hour. Job 101 incurred 4,500 machine
hours; Job 102 used 3,000 machine hours.
f. Job 101 was completed; Job 102 was still in process at the end of March.
g. Job 100 and Job 101 were shipped to customers during March. Both jobs had gross margins of 20% based on manufacturing cost.
h. The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March.
Required:
Prepare journal entries to record the transactions for the events from parts (a) through (g).
Compute the ending balance of the Work-in-process inventory account.
Compute the overhead variance and indicate whether it is overapplied or underapplied.
Close the overhead variance to the Cost of goods sold account.
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