Sanker Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
|
Work In Process |
Finished Goods |
Cost of Goods Sold |
Total |
|
|
Direct materials |
$2,790 |
$7,680 |
$18,240 |
$28,710 |
|
Direct labor |
9,700 |
19,200 |
45,600 |
74,500 |
|
Manufacturing overhead applied |
5,440 |
8,000 |
18,560 |
32,000 |
|
Total |
$17,930 |
$34,880 |
$82,400 |
$135,210 |
Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied overhead for August would include