Linzee Liners estimates that its manufacturing overhead will be $$1,743,400$ in Year $1.$ It further estimates that direct labor costs will amount to $$758,000.$ During March, Linzee worked on four jobs with actual direct labor costs of $$35,800$ for Job $0301,$ $$23,300$ for Job $0302,$$$32,800$ for Job $0303,$ and $$16,800$ for Job $0304.$ Actual manufacturing overhead costs for the year were $$1,730,000.$ Actual direct labor costs for the year were $$743,000.$ Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates.

The amount of overhead applied in each of the inventory accounts at the end of Year $1$ is as follows.

Work$-$in$-$process inventory

Finished goods inventory

cost of goods sold

$$34,178$

$$273,424$

$1,401,298$

Required:

Prepare an entry to allocate the over$-$or underapplied overhead.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

A

Record an entry to allocate the over$-$ or underapplied overhead.