Based on the given information, we have calculated the cost of goods manufactured, and the cost of goods sold before adjusting for any under or overapplied overhead, and the manufacturing overhead underapplied. The underapplied overhead indicates that the actual overhead cost incurred was less than the overhead cost applied based on the predetermined rate. This could be due to more efficient operations or lower actual costs than estimated. To close the underapplied overhead, a journal entry was made to debit the cost of goods sold and credit the manufacturing overhead.