Answer Happy

Malcolm Company produces two products: products A and B. To
assign manufacturing overhead to the two products, the company uses
one single predetermined overhead rate for both products, and uses
machine hours as the allocation base. The following data are given
for the year 2021:
Actual manufacturing overhead incurred during
2021 $480,000
Estimated manufacturing overhead (estimated before the year 2021
started) $400,000
Estimated activity level in terms of number of machine hours
expected to be used in 2021 (estimated before the year 2021
started):
Product A 200,000 machine
hours
Product B 300,000 machine
hours
Actual activity level in terms of number of machine hours
actually used in 2021:
Product A 250,000 machine
hours
Product B 280,000 machine
hours
Units of the product produced during
2021:
Product A 460,000 units
Product B 240,000 units
At the end of each year, the company makes adjustment entries to
close out under- and over-applied manufacturing overhead to Cost of
Goods Sold. What is the journal entry to dispose of the
under-/over-applied manufacturing overhead to Cost of Goods Sold at
the end of 2021?
DR Manufacturing Overhead $56,000
CR Cost
of Goods
Sold
$56,000
DR Cost of Goods
Sold
$80,000
CR
Manufacturing Overhead $80,000
DR Cost of Goods Sold $56,000
CR
Manufacturing
Overhead
$56,000
DR Manufacturing Overhead $80,000
CR Cost
of Goods
Sold
$80,000