[The following information applies to the questions displayed below.] Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,600,000 4,350,000 64,000 2,860,000 1,740,000 58,000 830,000 2,160,000 $ 17,662,000 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under-or overapplied overhead to Cost of Goods Sold. 5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Req 5A Reg 5B Compute the amount of under- or overapplied overhead at year-end. Reg 5B > 5-a. Compute the amount of under-or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Reg SA Req 5B Prepare the necessary journal entry to record its disposition. (If no entry is required for a transaction/event, select "No journal entry Frequired" in the first account field.) View transaction list Journal entry worksheet Record under- or over applied overhead. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 6. Determine the company's 20x2 cost of goods sold. Finished-goods inventory, Jan. 1 Cost of goods available for sale $ 0 Unadjusted cost of goods sold $ 0 Cost of goods sold $ 0 7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold? Yes