Floral Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following:

Manufacturing overhead costs. . . . . . . .	$640,000
Direct labor cost. . . . . . . . . . . . . . . . . . .	$1,600,000
Machine hours. . . . . . . . . . . . . . . . . . . . .	80,000

At the end of the year, the company had actually incurred the following:

Direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . .	$1,190,000
Depreciation on manufacturing plant and
equipment. . . . . . . . . . . . . . . . . . . . . . . .	$490,000
Property taxes on plant. . . . . . . . . . . . . . . . . . . . . .	$19,500
Sales salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$24,000
Delivery drivers' wages. . . . . . . . . . . . . . . . . . . . . .	$16,500
Plant janitors' wages. . . . . . . . . . . . . . . . . . . . . . . .	$8,500
Machine hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	56,000 hours

Floral's accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually$400,000 not the $490,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was$570,000 The manufacturing overhead allocated to jobs was$448,000

Read the requirements

Prepare the journal entry to record manufacturing overhead costs incurred.
2.	Prepare the journal entry to record the manufacturing overhead allocated to jobs in production.
3.	Use a T-account to determine whether manufacturing overhead is underallocated or overallocated and by how much.
4.	Record the entry to close out the underallocated or overallocated manufacturing overhead.
5.	What is the adjusted ending balance of Cost of Goods Sold?

Requirement 1. Prepare the journal entry to record manufacturing overhead costs incurred. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit