(U nder.ipplied or overapplied overhead) At the end of 2006, Westmeier Cor¬ poration's accounts showed a $66,000 credit balance in Manufacturing Over¬ head. In addition, the company had the following account balances:

a. Prepare the necessary journal entry to close the overhead account if the balance is considered immaterial.

b. Prepare the necessary journal entry to close the overhead account if the balance is considered material.

c. Which method do you believe is more appropriate for the company and why?LO1.

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Work in Process Inventory Finished Goods Inventory Cost of Goods Sold $384,000 96,000 720,000