The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.

Determine whether there is over or underapplied overhead using T-accounts.

Prepare journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system. April 30 May 31 Inventories Raw materials Goods in process Finished goods $40,000 54,000 10,200 17,500 66,000 35,200 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 188,000 405,000 Indirect materials Indirect labor Other overhead costs 14,000 70,000 102,000 1,210,000 Sales (received in cash) Predetermined overhead rate based on direct labor cost 50% Determine whether there is over or underapplied overhead using T-accounts Factory Overhead nderapplied overhead Indirect materials Indirect labor Other overhead costs Underapplied overhead