Closing Manufacturing Overhead: Two Approaches. Olympia Company incurred actual manufacturing overhead costs of $630,000 during the year ended December 31, 2012. A total of $570,000 in overhead was applied to jobs. At December 31, 2012, work-in-process inventory totals $200,000, and finished goods inventory totals $400,000. Cost of goods sold before adjustments totals $1,400,000 for the year.
	WIP	200,000
	F. Goods	400,000
	COGS	1,400,000
Required:
1. Is overhead underapplied or overapplied?
2. Create the journal entry to close the manufacturing overhead account, assuming the balance is immaterial.
3. Create the journal entry to close the manufacturing overhead account, assuming the amount is material.
#1		Manufacturing Overhead
		Debit		Credit
			-	-
		Balance	-
		Overhead is:	Under Applied
#2
	Cost of Goods Sold	60,000
	Manufacturing Overhead		60,000
#3
	Work in Process	=
	Finished Goods	570,000
	Cost of Goods Sold	570,000
	Manufacturing Overhead		60,000
	** Debits to above accounts are NOT rounded - to get green you must use a formula