Required:

$1.$ Prepare journal entries to record the transactions for the year.

$2.$ Prepare T$-$accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T$-$accounts $($don$$t forget to enter the beginning balances in your inventory accounts$).$

$3$A$.$ Is Manufacturing Overhead underapplied or overapplied?

$3$B$.$ Prepare a journal entry to close Manufacturing Overhead to Cost of Goods Sold.

$4.$ Prepare an income statement. All of the information needed for the income statement is available in the journal entries and T$-$accounts you have prepared.