In 2012, the Cameratta Company used a predetermined manufacturing overhead rate of $4.75 per machine hour. Information for the year is as follows:

Actual overhead costs incurred:

Indirect materials $5,200

Indirect labor $3,750

Plant depreciation $4,800

Plant utilities and insurance $9,530

Other plant overhead costs $12,700

Total machine hours used during the year 7,520

Requirements:

1. What was the preliminary ending balance in the manufacturing overhead account before the year-end adjustment to clear the balance to zero?
2. Journalize the year-end adjustment to clear the balance to zero? Close overhead to WIP, finished goods and COGS. Ending Balances of related accounts are given below:

WIP 20,000$

Finished Goods 30,000$

COGS 40,000$