Prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to four decimal places, if necessary).Did the proration of the MOH difference in part (d) have a significant effect on COGS this period? Explain how you could evaluate significance here. Specify the new adjusted COGS.If Locktin reported sales of $475,000 this year, what gross margin percentage did it earn? If the company goal was to generate at least a 35% gross margin, did it meet its goal? What does this tell us about Locktin's control of product costs this period? P8.2 (LO 1, 2, 3) AN The following T-accounts provide selected data about Locktin's financial resultsfor the year. Sadly, several key components went missing after a thief broke into the Locktin accountingoffice:WIP InventoryRM Inventory22,500 ?75,000 ?Beg. bal.Beg. bal.52,500DM72,000 282.000End. bal.18,000DL90,000Applied MOH 112,500End. balFG Inventory90,000??монСontrol(Total debits 111,000 ?during theyear)Beg. bal.End. bal.72,000

Journal Entry The purpose of providing the journal entry to enter the required transaction into both debit and credit. Debit all expenses related transaction and credit all income related transaction as well.1) Journal Entries for Close the Manufacturing Overhead Difference Journal Entry Particulars Debit ($) Credit ($) Manufacturing Overhead 1500 To Cost of goods sold 1480 To Work in Process 20 (Being closing of manufacturing overhead) Working Note Allocation of Underapplied Manufacturing Overhead Work in Process Inventory 1500 1.33 20.00 Finished Goods Inventory 0 0% 0.00 Cost of goods sold 111000 98.67 1480.00 Total Manufacturing overhead applied 112500 15002) Answer = Yes Explanation Here total cost of goods sold incurred is $300000 and adjustment in manufacturing overhead $1480 because it incurred under applied manufacturing overhead and this was adjusted into both cost of goods sold and work in process as well. Adjusted Cost of goods sold Ledger Cost of goods sold Debit Credit ($) FG 300000 MOH 1480 Bal 298520 300000 300000 Manufacturing overhead Ledger Manufacturing overhead control Debit Credit ($) Total Debt 111000 Applied MOH 112500 COG 1480 WIP 20 112500 112500 Finished Goods Ledger Finished Goods Inventory Debit Credit ($) Beg Bal 90000 Cost of goods sold 300000 WIP 282000 Bal 300000 372000 300000 Work in Process Ledger Work in Process Inventory Debit Credit ($) Beg Bal 52500 Finished Goods 282000 DM 72000 MOH 20 DL 90000 Applied OH 112500 Bal 44980 327000 282020 3) Gross Profit Statement Gross Profit Statement Particulars Amount ($) Sales 475000 Less: Cost of Goods sold 298520 Gross Profit 176480 Gros Profit % 37.15% Here Gross Profit % = 37.15% and Company meet the required criteria in the gross profit above 35%. While analyzing the fact it is notice that control of production cost which reduces the cost of goods sold and increases the gross profit margin into the business as well.