Toffee Company produces the Micron-7, a computer-controlled home coffee roaster. Toffee uses a normal-costing system and allocates overhead at a rate of $2 per direct manufacturing labor dollar. The following data reflect select (partial) activity for the year 2020:

Costs incurred: Purchases of direct materials on credit Direct manufacturing labor Indirect labor Depreciation, factory equipment		$50,000 80,000 25,000 40,000
	January 1, 2020	December 31, 2020
Direct materials Work in process Finished goods	$2,000 4,000 10,000	5,000 7,000 8,000

Assume total actual MOH for the year is $152,000

Required (show your work):

1. Prepare journal entries for the 4 selected costs incurred. Also, prepare the journal entry to close out over- or underallocated overhead to COGS.
2. Calculate the dollar amount for direct materials used, cost of goods manufactured, and cost of goods sold.
3. Assume Toffee Company uses the proration method to dispose of over- or underallocated MOH. By how much would COGS increase/decrease under this method?