At the beginning of 2015, Conway Manufacturing had the following account balances:

Following additional details are provided for the year:

Direct materials placed in production

$80,000

Direct labor incurred

190,000

Manufacturing overhead incurred

300,000

Manufacturing overhead allocated to production

295,000

Cost of jobs completed and transferred

500,000

Total revenue

750,000

Cost of goods sold

440,000

Requirements :

1. Prepare the journal entries for the usage of direct material, labor cost incurred, actual overhead incurred, allocation of overhead, completion of job, sale of products.
2. Compute total cost of the products produced
3. Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead. Prepare the journal entry to close the balance of manufacturing overhead account.