4-15 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 directlabor 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 éntries to adjust for over- or underapplied overhead.