Bandy Company manufactures toys. It keeps a factory overhead account where actual factory overhead costs are recorded as a debit and factory overhead applied is recorded as a credit. At the end of the month, under- or overapplied factory overhead is calculated and transferred to the cost of goods sold account. For the month of January, Bandy had the following overhead transactions.

Jan. 1	Paid rent, $2,000.
10	Paid electricity bill, $500.
15	Paid repair expense, $3,000.
21	Vacation pay for machine operator, $500 (Wages Payable).
31	Depreciation expense for the month, $500.
31	Factory overhead applied was $6,000.

Required:

Prepare appropriate general journal entries to record factory overhead and factory overhead applied, and to close the under- or overapplied factory overhead to the cost of goods sold account.

Prepare appropriate general journal entries to record factory overhead and factory overhead applied, and to close the under- or overapplied factory overhead to the cost of goods sold account.

General Journal Instructions

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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