the company applies overhead cost to the jobs on the basis of machine hours worked. for the current year

Company is a manufecturer that unes job order costing. On January 1, the beginning of ts fiscal 532,000 Finshed Goods applies overhead cost to jobs on the basis of machine hours worked. For the predetermined overhead rate was based on a cost estimated $500,000 of 100,000 machine hours. The following The company applies overhead for an estimated activity level of 1 transactions were recorded for the a) Raw materials b) Raw materials were purchased for $500,000 with cash. were requisitioned for use in rial and production, 400,000 ($350,000 direct mate 550, 000 indirect materials). c) The following costs were accrued for employee services: direct labor, $100,000 commission, $90,000; and administrative salaries, $110,000. d) Sales travel costs were $ 20,000 eUtility costs for factory were $50,000 0 Advertising costs were $250,000. recorded for the year, S400,OO (75% factory related, and 25% SGA related). Insurance expired during the year, S20.000 (50% factory related and S0% SGA related) Manufacturing overhead was applied to production. Due to less than expected demand for its h) products, the company worked 75,000 machine-hours on all jobs during the year. ) Goods costing $1,200,000 to manufacture according to their job cost sheets were completed during the year k) Goods were sold to customers totaled $1,500,000 (50% on account and the remaining 50% (COD) cash on delivery). The goods cost $900,000 to manufacture according to their job cost sheets 1. Post transactions to T-accounts (remember to record beginning balances in the inventory accounts). Is Manufacturing Overhead (MOH) underapplied or overapplied for the year? Prepare the journal entry to close any balances in MOH to cost of goods sold (COGS). Do not allocate the 2. balances between ending inventories and (COGS). 3. Prepare income statement for the year