Bergamo Bay's computer system generated the following trial balance on December 31, 2019. The companys manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Wages Payable) has not been recorded.

		Debit			Credit
Cash	$	80,000
Accounts receivable		49,000
Raw materials inventory		29,500
Work in process inventory		0
Finished goods inventory		15,000
Prepaid rent		5,000
Accounts payable				$	8,700
Notes payable					11,700
Common stock					50,000
Retained earnings					77,000
Sales					202,100
Cost of goods sold		105,000
Factory overhead		28,000
Operating expenses		38,000
Totals	$	349,500		$	349,500

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

Materials requisition 21-3010:		$	4,700	direct materials to Job 402
Materials requisition 21-3011:		$	7,900	direct materials to Job 404
Materials requisition 21-3012:		$	1,700	indirect materials
Labor time ticket 6052:		$	4,000	direct labor to Job 402
Labor time ticket 6053:		$	16,000	direct labor to Job 404
Labor time ticket 6054:		$	5,000	indirect labor

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 100% of direct labor cost.

2-a. Post any entries from part 1 related to factory overhead to the T-account below to determine the amount of under- or overapplied overhead for the year. Determine whether there is any under- or overapplied overhead for the year. 2-b. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.