Stanley Printing Company began operation in March with three custom orders. The following costs were incurred during the month.

Direct Materials: Direct Labor:

Job A1 $950 Job A1 $ 2,450

Job A2 750 Job A2 1,950

Job A3 500 Job A3 900

Manufacturing Overhead:

Applied at the rate of 110% of direct labor dollars Actual Manufacturing Overhead incurred: $6,100

Jobs A1 and A2 were completed and sold during March. Job A3 was incomplete at the end of the month. Selling prices were as follows: Job A1, $9,400, and Job A2, $6,900.

a. Record the entries for all costs and revenues in T accounts.

b. Verify the ending balance in the Work in Process Inventory account.

c. Determine the amount of underapplied manufacturing overhead for March and transfer it to Cost of Goods Sold.