Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

1).Direct materials requisitioned during the month:

Job 101$25,000

Job 10223,000

Job 10324,000

$72,000

2).Direct labor incurred and charged to jobs during the month was:

Job 101$33,000

Job 10236,000

Job 10327,000

$96,000

3).Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 70% of direct labor costs.

4).Actual manufacturing overhead costs incurred during the month amounted to $76,000.

5).Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month.

Instructions:

(a)Prepare journal entries to record the above transactions. (5)

1.

2.

3.

4.

5.

(b)Answer the following questions:

1.How much manufacturing overhead was applied to Job 103 during the month? ____________.

2.Compute the unit cost of Jobs 101 and 103. ___________.

3.What is the balance in Work In Process Inventory at the end of the month? _________.

4.Determine if manufacturing overhead was under- or overapplied during the month. How much? _________.