Moira Company has just finished its first year of operations and must decide which method to use for adjusting cost of goods sold. The company used a budgeted indirect-cost rate for its manufacturing operations. The amount that was allocated ($435,000) to cost of goods sold was different from the actual amount incurred ($425,000). These were the respective ending balances in the Manufacturing Overhead Allocated and Manufacturing Overhead control accounts.

Ending balances in the relevant accounts were:

Work-in-Process $40,000

Finished Goods 80,000

Cost of Goods Sold 680,000

Required: Using the proration method, prepare a journal entry to adjust the ending balances in each of the manufacturing overhead, work-in-process, finished goods and cost of goods sold accounts.