$ $ $ 20,000 35,000 55,000 a $ $ $ During May, Sharpton Corporation recorded the following: Raw materials, beginning balance Work in process, beginning balance Finished Goods, beginning balance Transactions: Raw materials purchases, on account b Raw materials used in production (direct: 60,000; indirect: 13,000) Direct labor cost used d Indirect labor cost used Other manufacturing overhead costs incurred (i.e., utility, tax, etc.) f Manufacturing overhead applied Cost of units completed and transferred from Work in Process to g Finished Goods Any overapplied or underapplied manufacturing overhead is closed h to Cost of Goods Sold i Finished goods are sold (Revenue is $650,000 in Cash) 1 Prepare the journal entries to record the following transactions 55,000 73,000 60,000 25,000 e S 75,000 $ 109,000 $ 253,000 2 $ 300,000 (0) 2 Prepare T-Accounts for Work in Process and Manufacturing overhead, showing the ending balances WIP Mfg. OH 3 Determine the amount of overapplied or underapplied overhead (Choose one) 4 Based on above, prepare the journal entries to adjust manufacturing overhead at the end of the period 5 Explain why there is under or over application of manufacturing overhead