Tremonton Corporation uses a job order costing system in its manufacturing operation. For the year 2000 , Tremonton's predetermined overhead rate was 90 percent of direct labor costs. For September 2000, the company incurred the following costs:

Purchased raw materials on account $\$ 140,000$

Issued raw materials to manufacturing process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,000 Incurred direct labor costs ( $\$ 10$ per hour $\times 15,000$ hrs) . . . . . . . . . . . . . . . . . . . . . 150,000 Actual manufacturing overhead costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,500 Cost of goods completed and sold 483,000 The company's inventories at the beginning of September 2000 were as follows:

Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 24,000$

Work-in-process The costs of all completed orders are transferred directly from Work-in-Process Inventory to Cost of Goods Sold.

Required:

1. Compute the following amounts.

a. Work-in-Process Inventory balance at the end of September 2000

b. Over- or underapplied manufacturing overhead for the month of September.

2. Prepare journal entries to reflect the flow of costs into and out of Work-in-Process Inventory during September (omit explanations).