Allocating Underapplied Overhead. In 20x6, A.L.. Kate Company incurred fixed factory overhead totaling $240,000. However, it applied only $180.000. The account balances and the amount of fixed factory overhead applied in 20x6 and remaining in the accounts as of December 31, 20x6, are as follows: Amount of Appled Overhead Work-in-process inventory. Finished goods inventory Cost of goods sold Tolal Account Balance $ 150,000 300 000 800,000 $1,250,000 Included Accour: Balance $30,000 60.000 50,000 $100.000 Prepare the journal entry as of December 31, 20x6, to allocate the underapplied overhead to the appropriate accounts based on:

a. Overhead included in account balance.

b. Account balance.