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37. LO.4 (Journal entries; assigning costs to jobs; cost accumulation) lalani Corp. uses a job order costing system for the yachts it constructs. On September 1, 2010, the company had the following account balances: Raw Material Inventory $ 332,400 Work in Process Inventory 1,512,600 Cost of Goods Sold 4,864,000 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $586,400 Job #78 266,600 Job #82 659,600 The following transactions occurred during September: Sept. 1 Purchased $1,940,000 of raw material on account. 4 Issued $1,900,000 of raw material as follows: Job #75, $289,600; Job #78, $252,600; Job #82, $992,200; Job #86, $312,400; and indirect material, $53,200. 15 Prepared and paid the $757,000 factory payroll for September 1-15. Analysis of this payroll showed the following information: Job #75 9,660 hours $ 84,600 Job #78 26,320 hours 267,200 Job #82 20,300 hours 203,000 Job #86 10,280 hours 110,800 Indirect labor wages 91,400 15 On each payroll date, lalani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour.15 20 24 25 30 30 30 Job #25 was completed. accepted by the customer. and billed at a selling price of cost plus 30 percent Selling prices are rounded to the nearest whole dollar. Paid the following monthly factory bills: utilities. 539.000. rent. 520.000; and accounts payable {accrued in August}. $190,500. Purchased raw material on account. 5024.000. issued 5222.200 of raw material as follows; Job #20. 3.154.000: Job #02. 521 2.000: Job #00. 5349.000.- and indirect material. 555.000. Recorded additional factory overhead costs as Follows: depreciation. 5009.000: expired prepaid insurance. 5105.400; and accrued taxes and licenses. 5232.400. Recorded and paid the factory payroll for September item of S2i4.400. Analysis of the payroll follows: Job #20 0.940 hours 5122.400 Job #02 1 3.050 hours 22 3.400 lob sec 9.900 hours 243.500 Indirect labor wages 05.000 Applied oyerhead for the second half of the month to jobs a. Journali'ee the September transactions. In. Use Taccounts to post the informalion from the journal entries in {a} to the job cost subsidiary accounts and to general ledger accounts. c. Reconcile the September 3!} balances in the subsidiary ledger with the Work in Process Inventory account in the general ledger cl. Determine the amount of underappliecl or ostrappliecl overhead for September