The beginning inventory balances of 20X5 are given below for MCR Company: The following information and transactions are related to the operations of MCR Company for 20X5: a. Purchases of raw materials amounted to $233,000 b. Issuances of raw materials amounted $241,000 for direct materials and $1,300 for indirect materials. c. Payroll for the year amounted to $161,000 for direct labor and $45,000 for indirect labor. d. Manufacturing overhead is applied to production at 80% of direct labor cost. e. Other manufacturing overhead for the year amounted to $104,300. Credit Sundry Credits. f. Goods costing $516,000 were completed for the year. g. Sales on account for the year were $842,000. The cost of these sales amounted to $498,000. Required: 1. Prepare journal entries to record the information given above. 2. Compute the under- or overallocated manufacturing overhead of MCR Company in 20X5. Dispose of this amount using: a. Write-off to Cost of Goods Sold. b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold. c. Which method do you prefer in requirement a, and b? Explain