Ogden Corporation uses a job order costing system in its manufacturing operation. For the year 2011, Ogden’s predetermined overhead rate was 75% of direct labor costs. For September 2012, the company incurred the following costs:

Purchased raw materials on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000

Issued raw materials to manufacturing process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Incurred direct labor costs ($10 per hour _ 10,000 hrs.) . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Actual manufacturing overhead costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Cost of goods completed and sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255,000

The company’s inventories at the beginning of September 2012 were as follows:

Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,500

Work-in-process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000

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 2011

b. Over- or under-applied 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).