Fairfield Company applies manufacturing overhead to products at a predetermined rate of $64 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				80,000
Indirect materials	Used on multiple jobs				13,400
Hourly labor wages	860 hours @ $32 per hour
	190 hours for Job 101 =	$	6,080
	270 hours for Job 102 =		8,640
	400 hours for Job 103 =		12,800		27,520
Factory supervision					3,750
Production engineer					5,600
Factory janitorial work					1,500
Selling, general, and administrative salaries					8,200
Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.)					6,400
Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.)					4,100

1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

General Journal

1) Record the transfer of manufacturing overhead account balance to cost of goods sold.

2)

Indicate whether the entry in requirement 1 will increase or decrease Cost of Goods Sold.

	Increase
	Decrease