Calwell Corp. uses a job order costing system. Four jobs were started during the current year. The following is a record of the costs incurred:

\begin{array} { l | l | l | l } \text { Job \# } & \begin{array} { l } \text { Material } \\\text { Used }\end{array} & \begin{array} { l } \text { Direct } \\\text { Labor } \\\text { Used }\end{array} & \begin{array} { l } \text { Direct Labor } \\\text { Hours Used }\end{array} \\\hline 1010 & \$ 45,000 & \$ 72,000 & 8,000 \\\hline 1011 & 59,000 & 77,000 & 7,000 \\\hline 1012 & 35,000 & 30,000 & 3,000 \\\hline 1013 & 26,000 & 40,000 & 5,000\end{array}

Actual overhead costs were $55,800. The predetermined overhead rate is $2.40 per direct labor hour. During the year, Jobs 1010, 1012, and 1013 were completed. Also, Jobs 1010 and 1013 were sold for $387,000. Assuming that this is Calwell's first year of operations:
(a) Make the necessary journal entries to charge the costs to the jobs started and to record the completion and sale of finished jobs.
(b) Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Factory Overhead accounts. Does the Factory Overhead account balance indicate an over- or underapplied overhead?

In Comparison to a General Accounting System, a Cost Accounting

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