During fiscal year 2017, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city:

General Government...................................... $ 164,200

Public Safety.............................................. 302,000

Public Works.............................................. 224,400

Culture and Recreation................................... 181,700

Health and Welfare....................................... 168,100

Miscellaneous.............................................. 24,600

Total......................................................... $1.065,000

All goods ordered during the year were received at the following actual costs:

General Government............................. $ 159,800

Public Safety....................................... 301,700

Public Works...................................... 226,800

Culture and Recreation.......................... 181,700

Health and Welfare................................. 171,300

Miscellaneous....................................... 25,600

Total................................................... $1.066,900

Required

a. Prepare a summary journal entry in the General Fund general journal to record the issuance of purchase orders during fiscal year 2017. In addition, show subsidiary detail for the Encumbrances ledger.

b. Prepare summary journal entries in the General Fund general journal to record the receipt of and payment for goods during fiscal year 2017. In addition, show subsidiary detail for the Encumbrances and Expenditures ledgers.

c. Does the fact that the actual cost of goods received during the year exceeded the estimated cost when ordered suggest a budgetary or management problem?