In December 2016, Learer Companys manager estimated next years total direct labor cost assuming 25 persons working an average of 2,000 hours each at an average wage rate of $40 per hour. The manager also estimated the following manufacturing overhead costs for 2017.

Indirect labor	$	322,200
Factory supervision		219,000
Rent on factory building		143,000
Factory utilities		91,000
Factory insurance expired		71,000
DepreciationFactory equipment		380,000
Repairs expenseFactory equipment		63,000
Factory supplies used		71,800
Miscellaneous production costs		39,000
Total estimated overhead costs	$	1,400,000

At the end of 2017, records show the company incurred $1,810,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $607,000; Job 202, $566,000; Job 203, $301,000; Job 204, $719,000; and Job 205, $317,000. In addition, Job 206 is in process at the end of 2017 and had been charged $20,000 for direct labor. No jobs were in process at the end of 2016. The companys predetermined overhead rate is based on direct labor cost.

Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold at the end of 2017.

Journal entry worksheet