Dina Corp. uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the cost incurred:

Actual overhead costs were $55,800. The predetermined overhead allocation rate is $2.40 per direct labor hour. During the year, jobs 1010, 1012, and 1013 were completed. Also, jobs 1010 and 1013 were sold for $387,000. Assuming that this is Dina's first year of operations:
(a) Make the necessary journal entries to charge the costs to the jobs started and to record the completion and sale of finished jobs.
(b) Calculate the balance in the Goods in Process Inventory, Finished Goods inventory, and Factory Over head accounts. Does the Overhead account balance indicate an over- or underapplied overhead?

Job # | Material Used Direct Labor Used Direct Labor Hours Used 1010 $45,000 $72,000 8,000 1011 59,000 77,000 7,000 as 1012 35,000 30,000 3,000 1013 26,000 40,000 5,000