Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of total manufacturing overhead for an estimated activity level of 49,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating datafor the year:

Machine-hours40,000Manufacturing overhead cost$693,000Inventories at year-end:Raw materials$20,000Work in process (includes overhead applied of $60,000)$185,000Finished goods (includes overhead applied of $102,000)$314,500Cost of goods sold (includes overhead applied of $438,000)$1,350,500

Question: Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)