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The Winston Company estimates that the factory overhead for thefollowing year will be $716,400. The company has decided that thebasis for applying factory overhead should be machine hours, whichis estimated to be 39,800 hours. The total machine hours for theyear was 54,400 hours. The actual factory overhead for the year was$993,000.

Required:

	(a) Determine the total factoryoverhead amount applied.
	(b) Calculate the overappliedor underapplied amount for the year. Enter the amount as positivevalues.
	(c) Prepare the journal entry to close Factory Overhead intoCost of Goods Sold. Refer to the Chart of Accounts for exactwording of account titles. CHARTOF ACCOUNTS Winston Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 131 Materials 133 Work in Process 135 Factory Overhead 137 Finished Goods 141 Supplies 142 Prepaid Expenses 181 Land 190 Factory Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue (a) Determine the total factory overhead amount applied. Total factory overhead applied $? (b) Calculate the overapplied or underapplied amount for theyear. Enter the amount as positive values. Factory overhead (underapplied or overapplied?)by how much $? (c) Prepare the journal entry to close Factory Overhead intoCost of Goods Sold on December 31. Refer to the Chart of Accountsfor exact wording of account titles. PAGE 1 JOURNAL DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 2