Actual expenses accumulated in the manufacturing overhead account during the period are $950,000. At the beginning of the period, the estimated expense was planned at $930,000 and the number of direct labour hours were estimated at 10,000.

During the year, the actual amount of direct labour hours worked was 10,500.

Required:

1) Is the manufacturing overhead account over or under-applied, and by what amount?

2) Write a simple journal entry to correct it at year-end.

3) If the MOH contained in the cost of goods sold during the year was $800,000, the amount contained in the WIP Inventory is 40,000, and the amount in the ending finished goods inventory is 35,000, complete the journal entry from part 2 with greater precision