Applied vs. Actual Manufacturing Overhead Davis Manufacturing Corporation applies manufacturing overhead on the basis of 150% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $472,500 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $60,000, $30,000, and $210,000, respectively, of direct labor incurred during the current year. a. Determine the under applied manufacturing overhead at year-end (assume it is significant). Applied Manufacturing Overhead Work in process $ 60,000 Finished goods 0,000X Cost of goods sold 210,000 x Total: Under-applied manufacturing overhead $ b. Prepare a journal entry to record the disposition of the underapplied manufacturing overhead General lournal b. Prepare a journal entry to record the disposition of the underapplied manufacturing overhead. General Journal Description Debit Credit Work in process inventory Manufacturing overhead Cost of goods sold X 0 X Finished goods inventory 0 X Check