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Fairfield Company applies manufacturing overhead to products at a predetermined rate of $60 per direct labor hour. Its actual manufacturing costs for the most recent

Fairfield Company applies manufacturing overhead to products at a predetermined rate of $60 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here:

Item Description Total Cost
Direct materials Used on Jobs 101 and 102 87,000
Indirect materials Used on multiple jobs 14,000
Hourly labor wages 870 hours @ $30 per hour
220 hours for Job 101 = $ 6,600
250 hours for Job 102 = 7,500
400 hours for Job 103 = 12,000 26,100
Factory supervision 3,950
Production engineer 5,300
Factory janitorial work 1,800
Selling, general, and administrative salaries 8,700
Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) 6,600
Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.) 4,600

1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold.

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