The ZYX Company uses a job order cost system. The company's predetermined overhead rate is \(\$ 4\) per direct labor hour. The company's records show the following data for the first year's operations:

{Required:}
(1) Determine the underapplied or overapplied overhead for the year.
(2) Prepare the appropriate journal entry to close the underapplied or overapplied overhead directly to cost of goods sold.
(3) Prepare the appropriate journal entry to dispose of the underapplied or overapplied overhead. Assume that the company allocates any underapplied or overapplied overhead to work-in-process, finished goods, and cost of goods sold on the basis of their ending balances.

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Direct labor hours used...... Direct labor cost incurred. Factory overhead cost incurred. Raw materials inventory (ending). Work-in-process inventory (ending). Finished goods inventory (ending).. Cost of goods sold. 20,000 $100,000 150,000 20,000 40,000 60,000 200,000