Winston Manufacturing uses direct labor cost to apply overhead to its production. The budgeted direct labor cost and budgeted manufacturing overhead were $400 000 and $480 000 respectively. The following cost data were experienced last year: Material inventory 1/1/04 $ 10 000 Material inventory 12/31/04 2 000 Workin-process 1/1/04 12 000 Finished goods 1/1/04 33 000 Finished goods 12/31/04 23 000 Purchases of material 61 000 Direct labor incurred 45 000 Indirect material 13 000 Indirect labor 12 000 Other manufacturing overhead 20 000 Unadjusted cost of goods sold 170 000 1. Close the over/under applied overhead to cost of goods sold (journal entry).2. Prorate the over/under applied overhead to the proper accounts using the ending account balances for prorating (journal entry).3. Prepare the cost of goods manufactured statement.cost of goods manufactured statement.