) Michael Company uses job-order costing. The company has gathered the following data:

Direct materials purchased for cash$60,000

Direct materials requisitioned$50,000

Direct labor costs incurred$90,000

Factory overhead costs incurred$60,000

Cost of goods completed$180,000

Cost of goods sold$170,000

Sales for cash$300,000

Factory overhead applied?

Factory overhead costs are applied at 90% of direct labor costs.

Required:

1. A) Prepare the required journal entries for the above transactions.
2. B) Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.