Questions:
1. A company allocates overhead at a rate of 140% of direct labor cost. Actual overhead cost for the current period is $745,000, and direct labor cost is $500,000. Prepare the entry to close over- or under applied overhead to cost of goods sold.
2. A company's Factory Overhead T-account shows total debits of $325,000 and total credits of $331,000 at the end of a period. Prepare the journal entry to close the balance in the Factory Overhead account to Cost of Goods Sold.