Journalize the below transactions for Holt Corporation during May:

1-May

Purchased raw materials on account, $85,000.

3-May

Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,000 was classified as indirect materials.

6-May

Factory labor costs incurred were $105,000 of which $94,000 pertained to factory wages payable and the remaining amount pertained to  taxes payable

10-May

Time tickets indicated that $90,000 was direct labor and $15,000 was indirect labor.

15-May

Incurred the following overhead costs during the year: Utilities $12,000, Depreciation on manufacturing machinery $1,000, Repairs $1,000, Factory insurance $1,000.

22-May

Manufacturing overhead was applied at the rate of 125% of direct labor cost.

28-May

Goods costing $135,000 were completed in the factory.

28-May

Finished goods costing $90,000 to manufacture were sold on account for $130,000

31-May

Compute the balance in Manufacturing Overhead for the year, indicate whether overhead is over or under applied and prepare any necessary closing entries.