Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Use the following T-accounts to answer the following question. Cash Debit Credit Raw Materials Debit Credit Work In Process Debit Credit Finished Goods Debit Credit Manufacturing Overhead Debit Credit Cost of Goods Sold Debit Credit

The manufacturing overhead is:

Multiple Choice

$26,000 Underapplied

$4,000 Underapplied

$4,000 Overapplied

$26,000 Overapplied