Pental Manufacturing Company incurred the following transactions during the year:

a. Purchased raw materials on account, $50,500.

b. Requisitioned raw materials of $32,000 to the factory, which included $8,300 of indirect materials.

c. Accrued factory labor costs of $81,400, which included $17,000 of indirect labor. The workers have not yet been paid.

d. Incurred actual manufacturing overhead costs (on account) of $90,000.

e. Recorded depreciation for office equipment of $7,000.

f. Manufacturing overhead was applied at the rate of 150 percent of direct labor cost.

g. Completed jobs costing $102,000.

h. Sold jobs costing $70,000 for $87,500 on account.

Required:

1. Journalize transactions a–h.

2. Compute the over- or underapplied overhead

3. Prepare the journal entry to transfer the over- or underapplied balance to Cost of Goods Sold.
4. Compute adjusted cost of goods sold.