In its first year of operation, Montreal Printing Shop estimated
manufacturing overhead costs and activity in order to determine a
predetermined overhead rate. At year end, overhead was over-applied
by $4,700. It has been decided this over-applied overhead is
material at the end of the year and the amount should be allocated
among work in process 10%, finished goods 28%, and the rest to the
cost of goods sold. Prepare the adjusting entry to close out the
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