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Birmingham Bowling Ball Company (BBBC) uses a job-order costingsystem to accumulate manufacturing costs. The company’swork-in-process on December 31, 20x3, consisted of one job (no.3088), which was carried on the year-end balance sheet at $156,800.There was no finished-goods inventory on this date.

BBBC applies manufacturingoverhead to production on the basis of direct-labor cost. (Thebudgeted direct-labor cost is the company’s practical capacity, interms of direct-labor hours, multiplied by the budgeteddirect-labor rate.) Budgeted totals for 20x4 for direct labor andmanufacturing overhead are $4,200,000 and $5,460,000 respectively.Actual results for the year follow.

Direct materialused..................	$	5,500,000
Directlabor......................		4,350,000
Indirect materialused.................		63,000
Indirectlabor.....................		2,860,000
Factorydepreciation....................		1,740,000
Factoryinsurance.....................		59,000
Factoryutilities....................		832,000
Selling andadministrative expenses		2,160,000
Total	$	17,564,000

Job no. 3088 was completed in January 20x4; there was no work inprocess at year-end. All jobs produced during 20x4 were sold withthe exception of job no. 3154, which contained direct-materialcosts of $155,000 and direct-labor charges of $85,000. BBBC chargesany under- or overapplied overhead to Cost of Goods Sold. 4. Prepare the journal entry needed to record the year’s completedproduction. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.) 5-a. Compute the amount of under- or overapplied overhead atyear-end. 5-b. Prepare the necessary journal entry to record its disposition.(If no entry is required for a transaction/event, select"No journal entry required" in the first accountfield.) Determine BBBC’s 20x4 cost of goods sold. Finished Goods Jan 1 ? ? Cost of Goods Available for Sale ? ? Unadjusted Cost of Goods Sold ? ? Cost of Goods Sold