1. Record Journal Entries for the below transactions. 2. Compute the amount of under applied or over applied overhead and transfer it to the Cost of Goods Sold account.

Problem # 4 Cost incurred Previous Month Current Month Installation Supplies 25.00 Labor 300.00 150.00 Overhead (50% of labor) Internet services Direct Labor 100.00 150.00 Computer time 125.00 125.00 Overhead (20% of labor) Profit is 20 percent