(Under applied or over applied overhead) At the end of 2013, Jackson Tank Company’s account showed a $66,000 credit balance in manufacturing overhead control. In addition, the company had the following account balances:

Work in Process Inventory $384,000
Finished Goods Inventory $96,000
Cost of Goods Sold $720,000

a. Prepare the necessary journal entry to close the overhead account if the balance is considered immaterial.
b. Prepare the necessary journal entry to close the overhead account if the balance is considered material.
c. Which method do you believe in more appropriate for the company, and why?