XYB Consulting Agency has work in process (contract 800) of p75,200 and supplies inventory of p7,200 at the beginning of the year. Records show the following charges for Contract 800: Direct labor 35,200
Service overhead 40,000

For the first month of it's fiscal year, XYB has made available the following information:
1. Payroll costs for the month
Direct labor costs
Contract 800 26,000
Contract 801 102,000
Contract 802 76,000 p204,000
Indirect labor 48,000

2. Indirect supplies used 3,200

3. Utilities and other costs credited to
Accounts payable 73,600
Prepaid taxes & insurance for
the period 11,200
Depreciation 30,400

4. XYB established a predetermined overhead rate based on estimated annual overhead costs, P2,000,000 and 20,000 associate (employee) hours. This resulted in a rate of 100 per associate hour. Actual associate hours spent for each job in January are as follows:
Contract 800 200 hours
Contract 801 800 hours
Contract 802 700 hours

Apllied overhead to work in process in
January (1700 hours X 100 per hour) 170,000

5. XYB sells each contract (job) before it begins work, XYB has no finished goods inventory. Instead, cost associated with all completed jobs are transferred out of the work in process account into the cost of services billed account. Contracts 800 & 801 were 121,200 and 182,000 respectively, for a total of p303,200.

6. Service overhead was overapplied by p3,600.
Applied overhead 170,000
Actual overhead 166,400
3,600

7. Sales revenue for January 370,000
Marketing & adm exp 36,800

REQUIRED:
a. Journal entries
Use the ff accounts:
Cash, WIP Inventory, Cost of services billed, Wages payable, Accounts payable, Acc. Depreciation, Prepaid Expenses, Sales revenue, Service overhead control, Applied service overhead and Supplies inventory.
b. T accounts for the general ledger accounts
c. Prepare Income Statement for the month of January.