During February, Preet Manufacturing works on two jobs: A16 and B17. Summary data for these jobs are as follows:

Manufacturing Costs Incurred

Raw material purchased on account: $54,000

Factory labour $80,000

Manufacturing overhead exclusive of indirect materials and indirect labour: $59,800

Assignment of Costs:

Direct materials: Job No A16, $27,000, Job No B17, $21,000

Indirect materials: $3,000

Direct labour : Job No A16, $52,000, Job No B17, $26,000

Indirect labour $2,000

Manufacturing labour $2,000

Manufacturing overhead rate 80% of direct labour costs

Job A16 was completed and sold on account for $150,000. Job B17 was partially completed.

Instructions:

1. Journalize the February transactions.

2. What is the amount of under or overapplied manufacturing overhead?

3. Assuming the under or overapplied overhead for the year for the year is not allocated to the inventory accounts prepare adjusting entry to assign the amount to Cost of goods Sold.