The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor $53,000 $ 12,200 73,000 72,000 25,300 55,600 230,000 385,000 35,000 100,000 140,000 1,600,000 Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 80% Determine whether there is over or underapplied overhead. Factory Overhead Actual overhead Applied overhead Direct labor cost Estimated overhead Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. View transaction list Journal entry worksheet Record entry to allocate (close) underapplied/overapplied overhead to cost of goods sold Note: Enter debits before credits. Transaction General Journal Debit Credit