Problems 1. Quality Crafts Ltd uses a job costing system. The August cost data were as follows: Raw materials purchased on credit Direct labour costs Raw materials issued to production Actual manufacturing overhead costs Cost of goods manufactured Sales (all credit) 411,840 426,240 383,050 319,680 1,097,300 1,209,600 Machine hours for August were 64,800 hours, and the business applies overhead to production at a rate of $5.75 per machine hour. The beginning raw materials inventory was $46,080. The beginning work in process inventory was $77,760. The beginning and ending finished goods inventories were S115,200 and $149,750 respectively. Required: a) Prepare general journal entries to record the August transactions. b) Was overhead overapplied or underapplied for the month of August? c) Calculate the ending balances of raw materials and work in process. (Hint: Prepare T accounts for inventories.)