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Part A (H and I), Part B, and Part C.

Calculate the amount of over- or underapplied overhead for the month. This amount is debited or credited to Cost of Goods Sold. Journal entry worksheet A B C D E F G H Record transfer of Job 87. Note: Enter debits before credits, \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Debit & Credit \\ \hline 08 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Record entry Clear entry View general journal Determine inventory balances for Materials and Equipment Inventory and Work-in-Process Inventory Journal entry worksheet Problem 7-67 (Algo) Show Flow of Costs to Jobs (LO 7-2, 3) Manor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory of materials and equipment is on hand at all times, so work can start as quickly as possible. Special equipment is ordered as required. On August 1 , the Materials Inventory account had a balance of $54,900. The Work-in-Process inventory account is maintained to record costs of work not yet complete. There were two such jobs on August 1 with the following costs: Overhead has been applied at 40 percent of the costs of direct labor using an annual rate. During August, Manor Painting started two new jobs. Additional work was carried out on Jobs 84 and 87 . Job 87 was completed and billed to the customer. Details on the costs incurred on jobs during August follow: Other August Events 1. Purchased materials and equipment for $15,000. 2. Billed $195,900 to the customer for Job 87 and received payment for $115,900 of that amount. 3. Recelved $19,500 payment on Job 82 delivered to customer in July. 4. Determined that payroll for indirect labor personnel totaled $2,280. 5. Issued supplies and incidental materials for current jobs costing $840. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation): Required: a. Prepare journal entries to record the flow of costs for operations during August. b. Calculate the amount of over- or underapplied overhead for the month. This amount is debited or credited to Cost of Goods Sold. c. Determine inventory balances for Materials and Equipment Inventory and Work-In-Process Inventory

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