Fulton Construction company uses a job order costing system and applies overhead using normal costing system based on direct labor dollars. On December 1, it had two jobs in finished goods inventory and two jobs in its work-in-process inventory, as follows:

Job No.	Costs as of 12/1	Status
612	60,000	Completed
613	85,000	Completed
614	45,000	In-process
615	18,000	In-process

Selected data for the month of December follow:

1. Direct materials issued: Job 614: $13,000; Job 615: $8,000; Job 616: $12,000
2. Direct labor costs: Job 614: $20,000; Job 615: $42,000; Job 616: $5,000
3. Applied overhead: Job 614: $14,000; Job 615: $29,400; Job 616: $3,500
4. Actual overhead costs incurred: $50,000
5. Completed Job 614. Did not complete Jobs 615 and 616.
6. Sold Jobs 613 and 614.

Questions:

1. What is Finished Goods balance as of 12/31?

2. What is Work in Process balance as of 12/31?

3. What is Cost of Goods Sold for December?

4. What is overhead application rate (POHR)?

5. Was overhead over or underapplied in December? What effect will the adjustment to cost of goods sold have on the financial statements?