Dexter Corporation, which uses a job-costing system, had two jobs in process at the start of 20 x 1: job no. 59 ($95,000) and job no. 60 ($39,500). The following information is available:
The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $720,000 and 20,000 hours, respectively.
The company worked on three jobs during the first quarter. Direct materials used, direct labour incurred, and machine hours consumed were:

\begin{array} { cccc} \text { Job No. } & \text { Direct Material } & \text { Direct Labour } & \text { Machine Hours } \\59 & \$ 18,000 & \$ 45,000 & 900 \\60 & - 0 - & 25,000 & 600 \\61 & 37,000 & 35,000 & 1,200\end{array}

Manufacturing overhead during the first quarter included charges for depreciation ($20,000), indirect labour ($50,000), indirect materials used ($4,000), and other factory costs ($108,700).
Dexter completed job no. 59 and job no. 60. Job no. 59 was sold for cash, producing a profit of $24,600 for the firm.
Required:
A. Determine the company's predetermined overhead application rate.
B. Prepare journal entries as of March 31 to record the following. (Note: Use summary entries where appropriate by combining individual job data.)
1. The issuance of direct material to production, and the direct labour incurred.
2. The manufacturing overhead incurred during the quarter.
3. The application of manufacturing overhead to production.
4. The completion of job no. 59 and no. 60.
5. The sale of job no. 59.

In a Job-Order Costing System, the Journal Entry to Record

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