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Assume the company allocates underspplied or overapplied overhead proportionally to Work in Procoss, Finished Goods, and Cost of concle sald prepare the appropitate foumst entry: Notei if no entry is required for o transaction/event, select "No foumal entry required" in the first account field. Journal entry worksheet Record the allocation of the underapplied/overappled overhead to various accounts. Notei finter bebis belore crests. Required: 1. Compute the underapplled or overapplied overhead. 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal 3. Assume the company allocates underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, an of Goods Sold. Prepare the approprlate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Assume the company doses underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate Joumal entry. Note: if no entry is required for a transaction/event, select "No foumal entry required" in the first sccount fictd. Journal entry worksheet Record the entry to close the batance in the manufacturing overhead account to the cost of goods soid account. Note: Enter debits befort credits. Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products based on machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,615,000 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours. During the year, a large quantity of furniture on the market caused Luzadis to cut production and build inventories. The company provided the following data for the year: Required: 1. Compute the underapplied or overapplied overhead. 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. 3. Assume the company allocates underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. Compute the underapplied or overapplied overhead

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