Bergamo Bay's computer system generated the following trial balance on December 31, 2017. 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 Payroll Payable) has not been recorded.

		Debit			Credit
Cash	$	61,000
Accounts receivable		40,000
Raw materials inventory		25,000
Work in process inventory		0
Finished goods inventory		12,000
Prepaid rent		4,000
Accounts payable				$	11,200
Notes payable					14,200
Common stock					40,000
Retained earnings					94,000
Sales					173,600
Cost of goods sold		120,000
Factory overhead		27,000
Operating expenses		44,000
Totals	$	333,000		$	333,000

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:		$	4,600	direct materials to Job 402
Materials requisition 21-3011:		$	7,900	direct materials to Job 404
Materials requisition 21-3012:		$	2,400	indirect materials
Labor time ticket 6052:		$	3,000	direct labor to Job 402
Labor time ticket 6053:		$	8,000	direct labor to Job 404
Labor time ticket 6054:		$	4,000	indirect labor

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 150% of direct labor cost.

2.1 Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year.

2.2 Prepare the general journal adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material. Enter debits before credits.