Journal Entries, Year-End Disposition of Overhead Tuttle Company uses a job-order cost system. Factory overhead is applied at a rate of $2.50 per direct- labor hour. Both beginning and closing balances in work in process and fin-ished goods are zero. You are given the following data for 19_4, and the fact that all goods manufactured are sold.

Direct-labor hours used 50,000 Direct materials used $ 50,000 Direct labor used 100,000 Indirect labor used 25,000 Indirect supplies used 10,000 Rent—Plant and equipment 50,000 Miscellaneous overhead 50,000 Cost of goods sold 275,000 All under- or overapplied overhead is allocated wholly to cost of goods sold at the end of the year.

. Factory overhead applied.

. Factory overhead incurred.

. Prepare journal entries to record all the facts above, including all necessary entries to adjust for over- or underapplied overhead. lop4