During May, Sharpton Corporation recorded the following: Raw materials, beginning balance Work in process, beginning balance Finished Goods, beginning balance 20,000 35,000 55,000 Transactions: Raw materials purchases, on account Raw materials used in production (direct: 60,000; indirect: 13,000) Direct labor cost used a 55,000 73,000 %24 b. 60,000 25,000 Indirect labor cost used Other manufacturing overhead costs incurred (i.e., utility, tax, etc.) 75,000 Manufacturing overhead applied Cost of units completed and transferred from Work in Process to Finished Goods %24 109,000 253,000 Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold Finished goods are sold (Revenue is $650,000 in Cash) I Prepare the journal entries to record the following transactions 300,000 (a) (g) (1) 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.