The following events  occurred over the course of a year at Bagby Corp., which uses a job order costing system:

1. Direct materials purchases totaled $583,000.

2. $132,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory  account for indirect materials.

3. $569,000 of direct materials were used in production.

4. The direct labor payroll was $791,000 (credit Wages Payable).

5. Other manufacturing overhead costs incurred during the year totaled $690,000.

6. Bagby applies overhead based on a predetermined overhead rate of $21 per machine hour. The  company used 51,000 machine hours during the year.

7. During the year, Bagby transferred goods costing $2,410,000 into the Finished Goods Inventory account.

8. Bagby sold products with a manufacturing cost of $2,398,000 to customers during the year.

Required

a. Prepare journal entries to record these events.

b. Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances:

Account                                                             Balance

Direct Materials Inventory . . . . . . . . . . . . .  $36,000

Work in Process Inventory . . . . . . . . . . . . .  $24,000

Finished Goods Inventory . . . . . . . . . . . . .  $48,000

c. Was overhead under-or overapplied for the year? By how much?