For its first month of operations, Stellar company worked on only two jobs--Job X and Job Y. Job X consisted of 500 units, 400 of which were sold to customers and 100 of which remained in Finished Goods at the end of the month. Job Y consisted of 200 units and it was incomplete at the end of the month. The company also provides the following data:

Predetermined overhead rate (POHR) $ 4 perDLH

Actual direct labor hours (DLHs) used in each job:

JobX 15,000 DLHs

JobY 10,000 DLHs

Actual manufacturing overhead costs incurred during the month $ 95,000

Stellar closes any under-applied or over-applied overhead pmportionally to Work in Process, Finished Goods, and Cost of Goods Sold at the end of eve1y month.

Which of the following statements is true regarding the journal entry to cJose any under-applied or over-applied overhead for Stellar at the end of the month?

1. The journal entry includes a credit to the Manufacturing Overhead (MOH) account for $5,000.
2. The journal .entry includes a credit to the Work in Process (WIP) account for $600.
3. The journal entry includes a credit to the Cost of Goods Sold (COGS) account for $5,000.
4. The journal entry includes a credit to'the Direct Material (DM) account for $600.
5. The journal entry includes a credit to the Finished Goods (FG) account for $600.