The following events occurred over the course of a year at Waterway Corp., which uses a job order costing system:

1.	Raw materials purchases totaled $800,000. Purchases were made on account.
2.	$238,000 of indirect materials were used in production.
3.	$413,000 of direct materials were used in production.
4.	The direct labor payroll was $965,002 (credit Wages Payable).
5.	Other manufacturing overhead costs incurred during the year totaled $556,000 (credit Accounts Payable.
6.	Waterway applies overhead based on a predetermined overhead rate of $15 per machine hour. The company used 50,200 machine hours during the year.
7.	During the year, Waterway transferred goods costing $2,099,000 into the Finished Goods Inventory account.
8.	Waterway sold products with a manufacturing cost of $2,043,000 to customers during the year.

Prepare journal entries to record these events

Number	Account	Debit	Credit
1
2
3
4
5
6
7
8

Was overhead under- or overapplied for the year? By how much?

Overhead was _______________by _______________________