Information for three different companies follows. Each company applies factory overhead at the rate of $40\%$ of direct labor cost. In each scenario, the following entry was made to record the actual overhead costs:

Factory Overhead $85,000$

Salaries Payable $50,000$

Utilities Payable $15,000$

Supplies $4,000$

Accumulated Depreciation $16,000$

Prepare a journal entry for each company to transfer raw materials to production, record direct labor costs on each job, and apply overhead at the predetermined rate. If the scenario involves underapplied or overapplied overhead, prepare an additional journal entry to transfer

the amount to Cost of Goods Sold.

Company A: Raw materials transferred to production totaled $$100,000,$ and direct labor cost was $$212,500.$

Company B: Raw materials transferred to production totaled $$110,000,$ and direct labor cost was $$200,000.$

Company C: Raw materials transferred to production totaled $$90,000,$ and direct labor cost was $$225,000.$For Company B$,$ what amount should be debited to WIP?

Flag question: Question $2$

Question $210$ pts

For Company B$,$ journal entry should be prepared to transfer the underapplied overhead?

Dr$.$

Cr$.$