XYZ Company had the following information:

Budgeted overhead$75,000

Actual overhead$80,000

Budgeted Direct-labor hours20,000

Ending balances in the following accounts:

Ending Balance

Actual DLH in Ending Balance

Raw Materials Inventory

$ 40,000

0

Work In Process Inventory

$ 30,000

2,100

Finished Goods Inventory

$ 60,000

8,400

Cost of Goods Sold

$210,000

10,500

• Prepare the journal entry using the adjusted allocation method, ie. prorate the under- or over-allocated manufacturing overhead based on the overhead allocated in the ending balances of WIP, F/G and COGS
• Prepare the journal entry to close the overhead accounts using the proration method, ie., prorate the under- or over-allocated manufacturing overhead based on the ending balances in WIP, F/G and COGS.
• Prepare the journal entry to close the overhead accounts if the balance in (c) is considered immaterial and written off to COGS.