Injection Molding Services uses a job-order costing system. The account balances at the end of the period for the product cost related accounts are as follows.
Raw Materials Inventory.....................................$300,000
Work in Process Inventory.....................................$500,000
Finished Goods Inventory.....................................$600,000
Cost of Goods Sold..............................................$900,000
Manufacturing Overhead (credit) .........................$90,000
Required:
Prepare a journal entry to close the manufacturing overhead account assuming that the amount($90,000) is material.