Weyakwin Enterprises specializes in offering architectural consulting and design services to large clients. Given the nature of the services it provides, the company does not work on more than six jobs at a time. At the beginning of 2014, it estimated the following amounts:

Direct materials (blueprints and other supplies)	$	494,000
Direct professional labour (consulting)		2,470,000
Direct professional labour (design)		1,482,000
Consulting support		2,470,000
Design support		1,482,000

Support costs are allocated using predetermined overhead rates computed at the beginning of the year and are based on direct professional labour costs. Senior management recently changed its policy of allocating overhead costs. Separate rates are computed for the two types of support costs based on the corresponding direct professional labour costs. The company uses a normal costing system to track costs.

At the beginning of the third quarter in 2014, job 2014Q2-5 was unfinished. The following amounts were traced to it: direct materials, $24,700; professional labour (consulting), $123,500. During the third quarter, three new jobs were started: 2014Q3-1, 2014Q3-2, and 2014Q3-3. The following amounts were incurred during the quarter:

Direct materials (blueprints and other supplies)	$	123,500
Direct professional labour (consulting)		741,000
Direct professional labour (design)		625,800
Consulting support		741,000
Design support		592,800

At the end of the quarter, job 2014Q3-2 was still unfinished, and the following amounts were traced to it: direct materials, $37,050; professional labour (design), $88,920.

Required:

1.	Prepare T-accounts for jobs-in-process control; cost of jobs billed, direct professional labour control, support overhead allocated; support overhead control; and cash control. (Assume that all payments are made in cash.)

2.	Compute the beginning and ending amounts in the jobs-in-process account.

3-a.	Compute the over- or underallocated overhead amount(s) for the quarter.

3-b.	Prepare the journal entry over- or underallocated overhead (Close this amount to the cost of jobs billed account). (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

4.	Assume that the revenue earned during the quarter was $3,457,000. Compute the company's operating income for the third quarter.